Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Mar. 31, 2021 | May 17, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | China Green Agriculture, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --06-30 | |
Entity Common Stock, Shares Outstanding | 8,487,629 | |
Amendment Flag | false | |
Entity Central Index Key | 0000857949 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 001-34260 | |
Entity Incorporation, State or Country Code | NV | |
Entity Interactive Data Current | Yes |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 5,075,588 | $ 11,934,778 |
Accounts receivable, net | 125,733,691 | 105,693,326 |
Inventories, net | 64,017,955 | 98,921,081 |
Prepaid expenses and other current assets | 4,562,443 | 3,567,912 |
Amount due from related parties | 165,972 | 66 |
Advances to suppliers, net | 33,347,498 | 65,081,818 |
Total Current Assets | 232,903,147 | 285,198,981 |
Plant, property and equipment, net | 22,647,933 | 22,928,334 |
Other assets | 490,296 | 260,362 |
Other non-current assets | 10,261,553 | 10,943,875 |
Intangible assets, net | 16,429,712 | 15,751,625 |
Goodwill | 7,597,653 | 7,045,006 |
Total Assets | 290,330,294 | 342,128,183 |
Current Liabilities | ||
Accounts payable | 22,234,276 | 17,719,093 |
Customer deposits | 7,368,610 | 7,342,590 |
Accrued expenses and other payables | 16,372,988 | 14,139,324 |
Amount due to related parties | 4,342,376 | 4,212,407 |
Taxes payable | 32,771,128 | 31,645,452 |
Short term loans | 4,120,200 | 3,537,500 |
Interest payable | 782,838 | 725,895 |
Total Current Liabilities | 87,992,417 | 79,322,261 |
Total Liabilities | 87,992,417 | 79,322,261 |
Stockholders’ Equity | ||
Preferred Stock, $.001 par value, 20,000,000 shares authorized, zero shares issued and outstanding | ||
Common stock, $.001 par value, 115,197,165 shares authorized, 6,350,129 and 6,350,129 shares issued and outstanding as of March 31, 2021 and June 30, 2020, respectively | 6,350 | 6,350 |
Additional paid-in capital | 155,455,332 | 155,455,332 |
Statutory reserve | 28,808,244 | 29,743,991 |
Retained earnings | 26,995,719 | 111,864,338 |
Accumulated other comprehensive loss | (8,927,768) | (34,264,089) |
Total Stockholders’ Equity | 202,337,877 | 262,805,922 |
Total Liabilities and Stockholders’ Equity | $ 290,330,294 | $ 342,128,183 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2021 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 115,197,165 | 115,197,165 |
Common stock, shares issued | 6,350,129 | 6,350,129 |
Common stock, shares outstanding | 6,350,129 | 6,350,129 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (loss) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Sales | ||||
Total net sales | $ 86,068,404 | $ 85,826,689 | $ 178,567,978 | $ 186,213,269 |
Cost of goods sold | ||||
Total cost of goods sold | 71,621,754 | 73,209,255 | 147,385,540 | 151,616,103 |
Gross profit | 14,446,650 | 12,617,434 | 31,182,438 | 34,597,166 |
Operating expenses | ||||
Selling expenses | 3,203,422 | 2,273,818 | 11,264,533 | 9,761,145 |
General and administrative expenses | 25,784,656 | 58,807,987 | 102,266,279 | 107,911,310 |
Total operating expenses | 28,988,078 | 61,081,805 | 113,530,812 | 117,672,455 |
Income (loss) from operations | (14,541,428) | (48,464,371) | (82,348,374) | (83,075,289) |
Other income (expense) | ||||
Other income (expense) | 281 | (18,558) | (53,948) | (122,012) |
Interest income | 19,229 | 53,943 | 62,621 | 160,829 |
Interest expense | (57,316) | (76,306) | (181,269) | (241,004) |
Total other income (expense) | (37,806) | (40,921) | (172,596) | (202,187) |
Income (loss) before income taxes | (14,579,234) | (48,505,292) | (82,520,970) | (83,277,476) |
Provision for income taxes | 235,554 | 1,717,017 | 3,283,395 | 1,341,513 |
Net income (loss) | (14,814,788) | (50,222,309) | (85,804,365) | (84,618,989) |
Other comprehensive income (loss) | ||||
Foreign currency translation gain (loss) | (59,215) | (6,753,216) | 25,336,321 | (13,789,719) |
Comprehensive income (loss) | $ (14,874,003) | $ (56,975,525) | $ (60,468,044) | $ (98,408,708) |
Basic weighted average shares outstanding (in Shares) | 6,350,129 | 6,143,159 | 6,350,129 | 5,371,420 |
Basic net earnings per share (in Dollars per share) | $ (2.33) | $ (8.18) | $ (13.51) | $ (15.75) |
Diluted weighted average shares outstanding (in Shares) | 6,350,129 | 6,143,159 | 6,350,129 | 5,371,420 |
Diluted net earnings per share (in Dollars per share) | $ (2.33) | $ (8.18) | $ (13.51) | $ (15.75) |
Jinong | ||||
Sales | ||||
Total net sales | $ 15,818,610 | $ 11,266,437 | $ 45,249,797 | $ 44,842,738 |
Cost of goods sold | ||||
Total cost of goods sold | 11,543,109 | 8,193,579 | 33,149,990 | 28,814,001 |
Gufeng | ||||
Sales | ||||
Total net sales | 48,438,434 | 57,094,310 | 86,703,031 | 95,684,076 |
Cost of goods sold | ||||
Total cost of goods sold | 41,979,484 | 50,097,056 | 75,803,724 | 84,307,031 |
Yuxing | ||||
Sales | ||||
Total net sales | 3,055,588 | 2,014,987 | 8,161,271 | 7,016,208 |
Cost of goods sold | ||||
Total cost of goods sold | 2,441,868 | 1,847,112 | 6,624,796 | 6,009,429 |
VIEs - others | ||||
Sales | ||||
Total net sales | 18,755,772 | 15,450,955 | 38,453,879 | 38,670,247 |
Cost of goods sold | ||||
Total cost of goods sold | $ 15,657,293 | $ 13,071,508 | $ 31,807,030 | $ 32,485,642 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Stockholders’ Equity - USD ($) | Common Stock | Additional Paid In Capital | Statutory Reserve | Retained Earnings | Accumulated Other Comprehensive Income (loss) | Total |
Balance at Jun. 30, 2019 | $ 3,987 | $ 138,012,445 | $ 31,237,891 | $ 247,122,574 | $ (19,821,211) | $ 396,555,685 |
Balance (in Shares) at Jun. 30, 2019 | 3,986,912 | |||||
Net income (loss) | (84,618,989) | (84,618,989) | ||||
Issuance of stock for consulting services | $ 931 | 10,251,069 | 10,252,000 | |||
Issuance of stock for consulting services (in Shares) | 931,000 | |||||
Issuance of stock for convertible notes | $ 1,373 | 6,861,877 | 6,863,250 | |||
Issuance of stock for convertible notes (in Shares) | 1,372,650 | |||||
Stock based compensation | $ 60 | 329,940 | 330,000 | |||
Stock based compensation (in Shares) | 59,567 | |||||
Transfer to statutory reserve | (997,299) | 997,299 | ||||
Other comprehensive income (loss) | (13,789,719) | (13,789,719) | ||||
Balance at Mar. 31, 2020 | $ 6,350 | 155,455,332 | 30,240,593 | 163,500,883 | (33,610,930) | 315,592,228 |
Balance (in Shares) at Mar. 31, 2020 | 6,350,129 | |||||
Balance at Jun. 30, 2020 | $ 6,350 | 155,455,332 | 29,743,991 | 111,864,338 | (34,264,089) | 262,805,922 |
Balance (in Shares) at Jun. 30, 2020 | 6,350,129 | |||||
Net income (loss) | (85,804,365) | (85,804,365) | ||||
Transfer to statutory reserve | (936,746) | 935,746 | ||||
Other comprehensive income (loss) | 25,336,321 | 25,336,321 | ||||
Balance at Mar. 31, 2021 | $ 6,350 | $ 155,455,332 | $ 28,808,244 | $ 26,995,719 | $ (8,927,768) | $ 202,337,877 |
Balance (in Shares) at Mar. 31, 2021 | 6,350,129 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net income (loss) | $ (85,804,365) | $ (84,618,989) |
Adjustments to reconcile Net income (loss) to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 2,850,502 | 3,543,104 |
Provision for losses on accounts receivable | 61,056,089 | 76,346,104 |
Gain (Loss) on disposal of property, plant and equipment | 1,584 | 33,923 |
Amortization of debt discount | 41,814 | |
Inventories impairment | 30,711,331 | |
Change in fair value of derivative liability | (17,782) | |
Changes in operating assets | ||
Accounts receivable | (72,590,519) | (103,436,382) |
Amount due from related parties | (162,868) | |
Other current assets | (714,599) | (681,319) |
Inventories | 11,171,731 | 95,744,236 |
Advances to suppliers | 36,166,189 | (30,473,093) |
Other assets | 1,512,648 | 1,414,043 |
Changes in operating liabilities | ||
Accounts payable | 3,084,590 | 1,906,246 |
Customer deposits | (539,919) | 1,414,707 |
Tax payables | 952,179 | (663,905) |
Accrued expenses and other payables | 1,720,890 | 744,750 |
Interest payable | 25,659 | |
Net cash provided by (used in) operating activities | (10,584,537) | (38,676,884) |
Cash flows from investing activities | ||
Purchase of plant, property, and equipment | (263,711) | (66,210) |
Change in construction in process | (205,679) | |
Net cash provided by (used in) investing activities | (469,390) | (66,210) |
Cash flows from financing activities | ||
Proceeds from the sale of common stock | 10,252,000 | |
Proceeds from loans | 305,200 | 282,200 |
Advance from related party | 50,000 | 600,000 |
Net cash provided by (used in) financing activities | 355,200 | 11,134,200 |
Effect of exchange rate change on cash and cash equivalents | 3,839,537 | (3,339,772) |
Net increase in cash and cash equivalents | (6,859,191) | (30,948,665) |
Cash and cash equivalents, beginning balance | 11,934,778 | 72,259,804 |
Cash and cash equivalents, ending balance | 5,075,587 | 41,311,138 |
Supplement disclosure of cash flow information | ||
Interest expense paid | 181,269 | 215,195 |
Income taxes paid | $ 283,618 | $ 2,802,117 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS China Green Agriculture, Inc. (the “Company”, “Parent Company” or “Green Nevada”), through its subsidiaries, is engaged in the research, development, production, distribution and sale of humic acid-based compound fertilizer, compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, highly-concentrated water-soluble fertilizers and mixed organic-inorganic compound fertilizer and the development, production and distribution of agricultural products. Unless the context indicates otherwise, as used in this Report, the following are the references herein of all the subsidiaries of the Company (i) Green Agriculture Holding Corporation (“Green New Jersey”), a wholly-owned subsidiary of Green Nevada, incorporated in the State of New Jersey; (ii) Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. (“Jinong”), a wholly-owned subsidiary of Green New Jersey organized under the laws of the PRC; (iii) Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd. (“Yuxing”), a Variable Interest Entity (“VIE”) in the in PRC controlled by Jinong through a series of contractual agreements; (iv) Beijing Gufeng Chemical Products Co., Ltd., a wholly-owned subsidiary of Jinong in the PRC (“Gufeng”), and (v) Beijing Tianjuyuan Fertilizer Co., Ltd., Gufeng’s wholly-owned subsidiary in the PRC (“Tianjuyuan”). On June 30, 2016 the Company, through its wholly-owned subsidiary Jinong, entered into strategic acquisition agreements and a series of contractual agreements with the shareholders of the following six companies that are organized under the laws of the PRC and would be deemed VIEs: Shaanxi Lishijie Agrochemical Co., Ltd. (“Lishijie”), Songyuan Jinyangguang Sannong Service Co., Ltd. (“Jinyangguang”), Shenqiu County Zhenbai Agriculture Co., Ltd. (“Zhenbai”), Weinan City Linwei District Wangtian Agricultural Materials Co., Ltd. (“Wangtian”), Aksu Xindeguo Agricultural Materials Co., Ltd. (“Xindeguo”), and Xinjiang Xinyulei Eco-agriculture Science and Technology co., Ltd. (“Xinyulei”). On January 1, 2017, the Company, through its wholly-owned subsidiary Jinong, entered into strategic acquisition agreements and a series of contractual agreements with the shareholders of the following two companies that are organized under the laws of the PRC and would be deemed VIEs, Sunwu County Xiangrong Agricultural Materials Co., Ltd. (“Xiangrong”), and Anhui Fengnong Seed Co., Ltd. (“Fengnong”). On November 30, 2017, the Company, through its wholly-owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Zhenbai. Yuxing, Lishijie, Jinyangguang, Wangtian, Xindeguo, Xinyulei, Xiangrong and Fengnong may also collectively be referred to as the “the VIE Companies”; Lishijie, Jinyangguang, Wangtian, Xindeguo, Xinyulei, Xiangrong and Fengnong may also collectively be referred to as “the sales VIEs” or “the sales VIE companies”. The Company’s corporate structure as of March 31, 2021 is set forth in the diagram below: |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principle of consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Green New Jersey, Jinong, Gufeng, Tianjuyuan, and the VIE Companies. All significant inter-company accounts and transactions have been eliminated in consolidation. Effective June 16, 2013, Yuxing was converted from being a wholly-owned foreign enterprise 100% owned by Jinong to a domestic enterprise 100% owned one natural person, who is not affiliated to the Company (“Yuxing’s Owner”). Effective the same day, Yuxing’s Owner entered into a series of contractual agreements with Jinong pursuant to which Yuxing became the VIE of Jinong. VIE assessment A VIE is an entity (1) that has total equity at risk that is not sufficient to finance its activities without additional subordinated financial support from other entities, (2) where the group of equity holders does not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance, or the obligation to absorb the entity’s expected losses or the right to receive the entity’s expected residual returns, or both, or (3) where the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. To determine if an entity is considered a VIE, the Company first performs a qualitative analysis, which requires certain subjective decisions regarding its assessments, including, but not limited to, the design of the entity, the variability that the entity was designed to create and pass along to its interest holders, the rights of the parties, and the purpose of the arrangement. If the Company cannot conclude after a qualitative analysis whether an entity is a VIE, it performs a quantitative analysis. The qualitative analysis considered the design of the entity, the risks that cause variability, the purpose for which the entity was created, and the variability that the entity was designed to pass along to its variable interest holders. When the primary beneficiary could not be identified through a qualitative analysis, we used internal cash flow models to compute and allocate expected losses or expected residual returns to each variable interest holder based upon the relative contractual rights and preferences of each interest holder in the VIE’s capital structure. Use of estimates The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to the recent pandemic outbreak of the novel coronavirus (“COVID-19”). Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at commencement based on the present value of lease payments over the lease term. As the implicit rate is typically not readily determinable in the Company’s lease agreements, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recognized on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Additionally, the Company accounts for lease and non-lease components as a single lease component for its identified asset classes. As of March 31, 2021, the Company does not have any material leases for the implementation of ASC 842. Cash and cash equivalents and concentration of cash For statement of cash flows purposes, the Company considers all cash on hand and in banks, certificates of deposit with state owned banks in the PRC and banks in the United States, and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. The Company maintains large sums of cash in three major banks in China. The aggregate cash in such accounts and on hand as of March 31, 2021 and June 30, 2020 were $5,016,399 and $11,866,308, respectively. There is no insurance securing these deposits in China. In addition, the Company also had $59,189 and $68,470 in cash in two banks in the United States as of March 31, 2021 and June 30, 2020, respectively. Cash overdraft as of balance sheet date will be reflected as liabilities in the balance sheet. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. Accounts receivable Management regularly reviews the composition of accounts receivable and analyzes customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves at each year-end. Accounts considered uncollectible are provisioned for /written off based upon management’s assessment. As of March 31, 2021, and June 30, 2020, the Company had accounts receivable of $125,733,691 and $105,693,326, net of allowance for doubtful accounts of $37,135,352 and $38,466,200, respectively. The company recorded bad debt expense in the amount of $61 million and $76 million for the nine months ended March 31, 2021 and 2020, respectively. The Company adopts no policy to accept product returns after the sales delivery. Inventories Inventory is valued at the lower of cost (determined on a weighted average basis) or market. Inventories consist of raw materials, work in process, finished goods and packaging materials. The Company reviews its inventories regularly for possible obsolete goods and establishes reserves when determined necessary. As of March 31, 2021, and 2020, the Company had no reserve for obsolete goods. The company confirmed the loss of $31 million and $25 million of inventories for the nine months ended March 31, 2021 and 2020, respectively. Intangible Assets The Company records intangible assets acquired individually or as part of a group at fair value. Intangible assets with definitive lives are amortized over the useful life of the intangible asset, which is the period over which the asset is expected to contribute directly or indirectly to the entity’s future cash flows. The Company evaluates intangible assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. The Company has not recorded impairment of intangible assets as of March 31, 2021 and 2020, respectively. Customer deposits Payments received before all the relevant criteria for revenue recognition are satisfied are recorded as customer deposits. When all revenue recognition criteria are met, the customer deposits are recognized as revenue. As of March 31, 2021, and June 30, 2020, the Company had customer deposits of $7,368,610 and $7,342,590, respectively. Earnings per share Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards. The components of basic and diluted earnings per share consist of the following: Three Months Ended March 31 2021 2020 Net Income (loss) for Basic Earnings Per Share $ (14,814,788 ) $ (50,222,309 ) Basic Weighted Average Number of Shares 6,350,129 6,143,159 Net Income (loss) Per Share – Basic $ (2.33 ) $ (8.18 ) Net Income (loss) for Diluted Earnings Per Share $ (14,814,788 ) $ (50,222,309 ) Diluted Weighted Average Number of Shares 6,350,129 6,143,159 Net Income (loss) Per Share – Diluted $ (2.33 ) $ (8.18 ) Nine Months Ended March 31, 2021 2020 Net Income (loss) for Basic Earnings Per Share $ (85,804,365 ) $ (83,277,476 ) Basic Weighted Average Number of Shares 6,350,129 5,371,420 Net Income (loss) Per Share – Basic $ (13.51 ) $ (15.75 ) Net Income (loss) for Diluted Earnings Per Share $ (85,804,365 ) $ (83,277,476 ) Diluted Weighted Average Number of Shares 6,350,129 5,371,420 Net Income (loss) Per Share – Diluted $ (13.51 ) $ (15.75 ) Recent accounting pronouncements In August 2018, the FASB issued ASU 2018-13, “Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements from Accounting Standards Codification (“ASC”) 820, “Fair Value Measurement.” ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The effect of the adoption of ASU 2018-13 will be a change to the disclosure requirements for certain fair value measurements. In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” ASU 2018-15 requires customers in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40, “Intangibles—Goodwill and Other—Internal-Use Software,” to determine which implementation costs may be capitalized. ASU 2018-15 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The amendments in ASU 2018-15 can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company does not expect the adoption of ASU 2018-15 to have a material impact on its unaudited condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” ASU 2019-12 eliminates certain exceptions within ASC 740, “Income Taxes,” and clarifies certain aspects of ASC 740 to promote consistency among reporting entities. ASU 2019-12 is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company is evaluating the impact that adoption of ASU 2019-12 will have on its unaudited condensed consolidated financial statements. |
Going Cercern
Going Cercern | 9 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CERCERN | NOTE 3 – GOING CERCERN The Company’s financial statements are prepared assuming that the Company will continue as a going concern. The Company has incurred operating losses and had negative operating cash flows during the reporting period from July 1, 2020 through March 31, 2021. These factors raise doubt about the Company’s ability to continue as a going concern. To meet its working capital needs through the next twelve months and to fund the growth of the Company, the Company may consider plans to raise additional funds through the issuance of equity or borrow loan from local bank. The ability of the Company to continue as a going concern is dependent upon its ability to successfully execute its new business strategy and eventually attain profitable operations. The accompanying financial statements do not include any adjustments to reflect the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as going concern. |
Inventories
Inventories | 9 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4 – INVENTORIES Inventories consisted of the following: March 31, June 30, 2021 2020 Raw materials $ 21,061,453 $ 43,177,071 Supplies and packing materials $ 392,847 $ 465,746 Work in progress $ 266,735 $ 374,756 Finished goods $ 42,296,920 $ 54,903,508 Total $ 64,017,955 $ 98,921,081 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 5 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: March 31, June 30, 2021 2020 Building and improvements $ 40,840,859 $ 37,799,650 Auto 3,510,165 3,207,619 Machinery and equipment 19,092,058 17,601,852 Total property, plant and equipment 63,443,082 58,609,121 Less: accumulated depreciation (40,795,150 ) (35,680,787 ) Total $ 22,647,933 $ 22,928,334 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 6 – INTANGIBLE ASSETS Intangible assets consisted of the following: March 31, June 30, 2021 2020 Land use rights, net $ 9,361,306 $ 8,850,905 Technology patent, net 1,887 2,069 Customer relationships, net 763,582 908,933 Non-compete agreement 92,117 230,669 Trademarks 6,210,820 5,759,049 Total $ 16,429,712 $ 15,751,625 LAND USE RIGHT On September 25, 2009, Yuxing was granted a land use right for approximately 88 acres (353,000 square meters or 3.8 million square feet) by the People’s Government and Land & Resources Bureau of Hu County, Xi’an, Shaanxi Province. The fair value of the related intangible asset was determined to be the respective cost of RMB73,184,895 (or $11,168,015). The intangible asset is being amortized over the grant period of 50 years using the straight-line method. On August 13, 2003, Tianjuyuan was granted a certificate of Land Use Right for a parcel of land of approximately 11 acres (42,726 square meters or 459,898 square feet) at Ping Gu District, Beijing. The purchase cost was recorded at RMB1,045,950 (or $159,612). The intangible asset is being amortized over the grant period of 50 years. On August 16, 2001, Jinong received a land use right as a contribution from a shareholder, which was granted by the People’s Government and Land & Resources Bureau of Yangling District, Shaanxi Province. The fair value of the related intangible asset at the time of the contribution was determined to be RMB7,285,099 (or $1,111,706). The intangible asset is being amortized over the grant period of 50 years. The Land Use Rights consisted of the following: March 31, June 30, 2021 2020 Land use rights $ 12,439,333 11,534,506 Less: accumulated amortization (3,078,027 ) (2,683,601 ) Total land use rights, net $ 9,361,306 8,850,905 TECHNOLOGY PATENT On August 16, 2001, Jinong was issued a technology patent related to a proprietary formula used in the production of humic acid. The fair value of the related intangible asset was determined to be the respective cost of RMB 5,875,068 (or $896,535) and is being amortized over the patent period of 10 years using the straight-line method. This technology patent has been fully amortized. On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value of the acquired technology patent was estimated to be RMB9,200,000 (or $1,403,920) and is amortized over the remaining useful life of six years using the straight-line method. As of March 31, 2021, this technology patent is fully amortized. The technology know-how consisted of the following: March 31, June 30, 2021 2020 Technology know-how $ 2,304,980 $ 2,137,317 Less: accumulated amortization (2,303,094 ) (2,135,248 ) Total technology know-how, net $ 1,886 $ 2,069 CUSTOMER RELATIONSHIPS On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value of the acquired customer relationships was estimated to be RMB65,000,000 (or $9,919,000) and is amortized over the remaining useful life of ten years. On June 30, 2016 and January 1, 2017, the Company acquired the sales VIE Companies. The fair value of the acquired customer relationships was estimated to be RMB16,472,179 (or $2,513,655) and is amortized over the remaining useful life of seven to ten years. March 31, June 30, 2021 2020 Customer relationships $ 12,166,737 $ 11,281,739 Less: accumulated amortization (11,403,156 ) (10,372,806 ) Total customer relationships, net $ 763,581 $ 908,933 NON-COMPETE AGREEMENT On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value of the acquired non-compete agreement was estimated to be RMB1,320,000 (or $201,432) and is amortized over the remaining useful life of five years using the straight-line method. On June 30, 2016 and January 1, 2017, the Company acquired the sales VIE Companies. The fair value of the acquired non-compete agreements was estimated to be RMB6,150,683 (or $938,594) and is amortized over the remaining useful life of five years using the straight-line method. March 31, June 30, 2021 2020 Non-compete agreement $ 1,245,740 $ 1,155,127 Less: accumulated amortization (1,153,623 ) (924,458 ) Total non-compete agreement, net $ 92,117 $ 230,669 TRADEMARKS On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value of the acquired trademarks was estimated to be RMB40,700,000 (or $6,210,820) and is subject to an annual impairment test. AMORTIZATION EXPENSE Estimated amortization expenses of intangible assets for the next five twelve months periods ended March 31, are as follows: Twelve Months Ended on March 31, Expense 2022 698,360 2023 591,575 2024 474,661 2025 367,559 2026 354,472 |
Other Non-Current Assets
Other Non-Current Assets | 9 Months Ended |
Mar. 31, 2021 | |
Other Assets Noncurrent [Abstract] | |
OTHER NON-CURRENT ASSETS | NOTE 7 – OTHER NON-CURRENT ASSETS Other non-current assets mainly include advance payments related to leasing land for use by the Company. As of March 31, 2021, the balance of other non-current assets was $10,261,553, which was the lease fee advances for agriculture lands that the Company engaged in Shiquan County from 2023 to 2027. In March 2017, Jinong entered into a lease agreement for approximately 3,400 mu, and 2600-hectare agriculture lands in Shiquan County, Shaanxi Province. The lease was from April 2017 and was renewable for every ten-year period up to 2066. The aggregate leasing fee was approximately RMB 13 million per annum, The Company had made 10-year advances of leasing fee per lease terms. The Company has amortized $1.5 million and $1.4 million as expenses for the Nine Months Ended March 31, 2021 and 2020, respectively. Estimated amortization expenses of the lease advance payments for the next four twelve-month periods ended March 31 and thereafter are as follows: Twelve months ending March 31, 2023 $ 2,048,655 2024 $ 2,048,655 2025 $ 2,048,655 2026 and thereafter $ 4,115,588 |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 9 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER PAYABLES | NOTE 8 – ACCRUED EXPENSES AND OTHER PAYABLES Accrued expenses and other payables consisted of the following: March 31, June 30, 2021 2020 Payroll and welfare payable $ 182,282 $ 168,705 Accrued expenses 8,935,041 7,640,130 Other payables 7,127,685 6,211,818 Other levy payable 127,980 118,671 Total $ 16,372,988 $ 14,139,324 |
Amount Due to Related Parties
Amount Due to Related Parties | 9 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
AMOUNT DUE TO RELATED PARTIES | NOTE 9 – AMOUNT DUE TO RELATED PARTIES At the end of December 2015, Yuxing entered into a sales agreement with the Company’s affiliate, 900LH.com Food Co., Ltd. (“900LH.com”, previously announced as Xi’an Gem Grain Co., Ltd) pursuant to which Yuxing is to supply various vegetables to 900LH.com for its incoming seasonal sales at the holidays and year ends (the “Sales Agreement”). The contingent contracted value of the Sales Agreement is RMB 25,500,000 (approximately $3,891,300). For the Nine Months Ended March 31, 2021 and 2020, Yuxing has sold approximately $175,948 and $294,983 products to 900LH.com. As of March 31, 2021, and June 30, 2020, the amount due to related parties was $4,342,376 and $4,212,407, respectively. As of March 31, 2021, and June 30, 2020, $1,068,200 and $990,500, respectively were amounts that Gufeng borrowed from a related party, Xi’an Techteam Science& Technology Industry (Group) Co. Ltd., a company controlled by Mr. Zhuoyu Li, Chairman and CEO of the Company, representing unsecured, non-interest-bearing loans that are due on demand. These loans are not subject to written agreements. As of March 31, 2021, and June 30, 2020, the Company’s subsidiary, Jinong, owed 900LH.com $12,688 and $11,819, respectively. On July 1, 2020, Jinong signed an office lease with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as Chairman. Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The lease provides for a two-year term effective as of July 1, 2020 with monthly rent of RMB24,480 (approximately $3,736). |
Loan Payables
Loan Payables | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
LOAN PAYABLES | NOTE 10 – LOAN PAYABLES As of March 31, 2021, the short-term loan payables consisted of three loans which mature on dates ranging from June 16, 2021 through August 5, 2021 with interest rates ranging from 5.22% to 5.66%. All loans are collateralized by Tianjuyuan’s land use right and building ownership right. No. Payee Loan period per agreement Interest Rate December 31, 1 Postal Saving Bank of China - Pinggu Branch June 17, 2020-June 16, 2021 5.66 % 2,289,000 2 Beijing Bank - Pinggu Branch June 22, 2020-June 22, 2021 5.22 % 1,526,000 3 Postal Saving Bank of China - Pinggu Branch August 6, 2020-August 5, 2021 5.66 % 305,200 Total $ 4,120,200 The interest expense from short-term loans was $181,269 and $215,241 for the period ended March 31, 2021 and 2020, respectively. |
Convertible Notes Payable
Convertible Notes Payable | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE | NOTE 11 – CONVERTIBLE NOTES PAYABLE Relating to the acquisition of the VIE Companies, the Company subsidiary, Jinong, issued to the VIE Companies shareholders convertible notes payable twice, in the aggregate notional amount of RMB 51,000,000 ($7,782,600) with a term of three years and an annual interest rate of 3%. No. Related Acquisitions of Sales VIEs Issuance Date Maturity Notional Conversion Notional Amount 1 Wangtian, Lishijie, Xindeguo, Xinyulei, Jinyangguang June 30, 2016 June 30, 2019 3 % $ 5.00 39,000,000 2 Fengnong, Xiangrong January 1, 2017 December 31, 2019 3 % $ 5.00 12,000,000 The convertible notes take priority over the preferred stock and common stock of Jinong, and any other class or series of capital stocks Jinong issues in the future in terms of interests and payments in the event of any liquidation, dissolution or winding up of Jinong. On or after the third anniversary of the issuance date of the note, noteholders may request Jinong to process the note conversion to convert the note into shares of the Company’s common stock. The notes cannot be converted prior to the mature date. The per share conversion price of the notes is the higher of the following: (i) $5.00 per share or (ii) 75% of the closing price of the Company’s common stock on the date the noteholder delivers the conversion notice. Due to the discontinuation of VIE agreements with Zhenbai’s shareholders, certain convertible notes issued on June 30, 2016 with a face amount of RMB 12,000,000 ($1,831,200) were tendered back to the Company. All outstanding balance of unpaid principal and accrued interest in the tendered convertible notes were forfeited. On November 15, 2019, the Company issued 995,000 shares of common stock at the price of $5.00 per share for the total amount of $4,975,000 to the holders of the Company’s convertible notes payable in connection with the payment of the convertible notes’ principal and interests. The convertible notes were issued on June 30, 2016 and matured on June 30, 2019. On February 14, 2020, the Company issued 377,650 shares of common stock at the price of $5.00 per share for the total amount of $1,888,250 to the holders of the Company’s convertible notes payable in connection with the payment of the convertible notes’ principal and interests. The convertible notes were issued on January 1, 2017 and matured on January 1, 2020. The Company determined that the fair value of the convertible notes payable was 0 as of March 31, 2021 and June 30, 2020. Aside from the forfeiture of the convertible notes previously issued to Zhenbai’s shareholders, the difference between the fair value of the notes and the face amount of the notes is being amortized to accretion implied interest expense over the three-year life of the notes. As of March 31, 2021, the accumulated amortization of this discount into accretion expenses was $1,375,499. As of March 31, 2020, the accumulated amortization of this discount into accretion expenses was $1,375,606. |
Taxes Payable
Taxes Payable | 9 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
TAXES PAYABLE | NOTE 12 – TAXES PAYABLE Enterprise Income Tax Effective January 1, 2008, the Enterprise Income Tax (“EIT”) law of the PRC replaced the tax laws for Domestic Enterprises (“DEs”) and Foreign Invested Enterprises (“FIEs”). The EIT rate of 25% replaced the 33% rate that was applicable to both DEs and FIEs. The two-year tax exemption and three-year 50% tax reduction tax holiday for production-oriented FIEs was eliminated. Since January 1, 2008, Jinong became subject to income tax in China at a rate of 15% as a high-tech company, because of the expiration of its tax exemption on December 31, 2007. Accordingly, it made provision for income taxes for the nine-month period ended March 31, 2021 and 2020 of $277,685 and $0, respectively. Value-Added Tax All the Company’s fertilizer products that are produced and sold in the PRC were subject to a Chinese Value-Added Tax (VAT) of 13% of the gross sales price. On April 29, 2008, the PRC State of Administration of Taxation (SAT) released Notice #56, “ Exemption of VAT for Organic Fertilizer Products Reinstatement of VAT for Fertilizer Products Supplementary Reinstatement of VAT for Fertilizer Products On April 28, 2017, the PRC State of Administration of Taxation (SAT) released Notice 2017 #37, “ Notice on Policy of Reduced Value Added Tax Rate, On April 4, 2018, the PRC State of Administration of Taxation (SAT) released Notice 2018 #32, “ Notice on Adjustment of VAT Tax Rate, On March 20, 2019, the PRC State of Administration of Taxation (SAT) released Notice 2019 #39, “ Announcement on Policies Concerning Deepening the Reform of Value Added Tax, Income Taxes and Related Payables March 31, June 30, 2021 2020 VAT provision $ (229,408 ) $ (257,068 ) Income tax payable 2,557,354 1,704,543 Other levies 1,432,647 1,187,442 Repatriation tax 29,010,535 29,010,535 Total $ 32,771,128 $ 31,645,452 The provision for income taxes consists of the following: March 31, June 30, 2021 2020 Current tax - foreign $ 3,283,395 $ 2,344,928 Deferred tax - - Total $ 3,283,395 $ 2,344,928 Significant components of deferred tax assets were as follows: March 31, June 30, 2021 2020 Deferred tax assets Deferred Tax Benefit 35,842,375 33,743,546 Valuation allowance (35,842,375 ) (33,743,546 ) Total deferred tax assets $ - - Tax Rate Reconciliation Our effective tax rates were approximately -4.0% and-1.6% for the nine months ended March 31, 2021 and 2020, respectively. Substantially all the Company’s income before income taxes and related tax expense are from PRC sources. Actual income tax benefit reported in the consolidated statements of operations and comprehensive income (loss) differ from the amounts computed by applying the US statutory income tax rate of 21.0% to income before income taxes for the Nine Months Ended March 31, 2021 and 2020 for the following reasons: March 31, 2021 China United States 15% - 25% 21% Total Pretax income (loss) $ (81,169,349 ) (1,351,622 ) $ (82,520,971 ) Expected income tax expense (benefit) (20,292,337 ) 25.0 % (283,841 ) 21.0 % (20,576,178 ) High-tech income benefits on Jinong 2,667,471 (3.3 )% - - 2,667,471 Losses from subsidiaries in which no benefit is recognized 18,725,422 (23.1 )% - - 18,725,422 Change in valuation allowance on deferred tax asset from US tax benefit 2,182,839 (2.7 )% 283,841 (21.0 )% 2,466,680 Actual tax expense $ 3,283,395 (4.0 )% $ - - % $ 3,283,395 (4.0 )% March 31, 2020 China United States Total Pretax income (loss) $ (82,037,196 ) (1,240,280 ) $ (83,277,476 ) Expected income tax expense (benefit) (20,509,299 ) 25.0 % (260,459 ) 21.0 % (20,769,758 ) High-tech income benefits on Jinong 2,561,450 (3.1 )% - - 2,561,450 Losses from subsidiaries in which no benefit is recognized 19,289,362 (23.5 )% - - 19,289,362 Change in valuation allowance on deferred tax asset from US tax benefit - 260,459 (21.0 )% 260,459 Actual tax expense $ 1,341,513 (1.6 )% $ - - % $ 1,341,513 (1.6 )% |
Stockholders_ Equity
Stockholders’ Equity | 9 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 13 – STOCKHOLDERS’ EQUITY Common Stock On November 15, 2019, the Company issued 995,000 shares of common stock at the price of $5.00 per share for the total amount of $4,975,000 to the holders of the Company’s convertible notes payable in connection with the payment of the convertible notes’ principal and interests. The convertible notes were issued on June 30, 2016 and matured on June 30, 2019. On February 14, 2020, the Company issued 377,650 shares of common stock at the price of $5.00 per share to the holders of the Company’s convertible notes payable in connection with the payment of the convertible notes’ principal and interests. The convertible notes were issued on January 1, 2017 and matured on January 1, 2020. There were no shares of common stock issued during the nine months ended March 31, 2021. As of March 31, 2021, and June 30, 2020, there were 6,350,129 and 6,350,129 shares of common stock issued and outstanding, respectively. On April 5, 2021, the Company entered into certain Security Purchase Agreement (the “SPA”) with certain “non-US persons” as defined in Regulation S promulgated under Securities Act of 1933, in connection with a private placement offering of 2,000,000 shares of common stock, par value $0.001 per share, of the Company. The purchase price per share of the Offering is $7.00. The transaction contemplated in the SPA closed simultaneously with the execution of the SPA. On April 7, 2021, the Company granted and issued 137,500 shares of common stock to settle the payable of consulting services under the 2009 Plan. The value of the stock was $770,000 and was based on the fair value of the Company’s common stock on the grant date. Preferred Stock Under the Company’s Articles of Incorporation, the Board has the authority, without further action by stockholders, to designate up to 20,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges, qualifications and restrictions granted to or imposed upon the preferred stock, including dividend rights, conversion rights, voting rights, rights and terms of redemption, liquidation preference and sinking fund terms, any or all of which may be greater than the rights of the common stock. If the Company sells preferred stock under its registration statement on Form S-3, it will fix the rights, preferences, privileges, qualifications and restrictions of the preferred stock of each series in the certificate of designation relating to that series and will file the certificate of designation that describes the terms of the series of preferred stock the Company offers before the issuance of the related series of preferred stock. As of March 31, 2021, the Company has 20,000,000 shares of preferred stock authorized, with a par value of $.001 per share, of which no shares are issued or outstanding. |
Concentrations and Litigation
Concentrations and Litigation | 9 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS AND LITIGATION | NOTE 14 – CONCENTRATIONS AND LITIGATION Market Concentration All the Company’s revenue-generating operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC’s economy. The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among other things, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by, among other things, changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation. Vendor and Customer Concentration There was only one vendor from which the Company purchased more than 10% of its raw materials, with the total of 11.2% of its raw materials for the Nine Months Ended March 31, 2021. Total purchase from this vendor is $13,506,092 for the nine-month period ended March 31, 2021. None of the vendors accounted over 10% of the Company’s purchase of raw materials and supplies for the nine months ended March 31, 2020. No customer accounted for over 10% of the Company’s sales for the Nine Months Ended March 31, 2021. There were two customers, from which the Company sold 10.6% and 10.4% of its products during the year ended March 31, 2020. Total sales from these two customers was amounted to $33,957,707 as March 31, 2020. Litigation On June 5, 2020, an individual filed suit pro se (as in, representing oneself without an attorney) in the Southern District of Florida federal court alleging violations of the Securities Exchange Act. The Company believes the action is without merit and vigorously opposed it. The company has moved to dismiss the litigation and for attorney’s fees from the plaintiff. The motions are pending. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 15 – SEGMENT REPORTING The Company is organized into four main business segments, based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production) and the sales VIEs. Each of the four operating segments referenced above has separate and distinct general ledgers. The chief operating decision maker (“CODM”) receives financial information, including revenue, gross margin, operating income (expense) and net income (loss) produced from the various general ledger systems to make decisions about allocating resources and assessing performance; however, the principal measure of segment profitability or loss used by the CODM is net income (loss) by segment. Three Months Three Months Nine Months Nine Months March 31, 2021 March 31, 2020 March 31, March 31, Revenues from unaffiliated customers: Jinong $ 15,818,610 $ 11,266,437 $ 45,249,797 $ 44,842,738 Gufeng 48,438,434 57,094,310 86,703,031 95,684,076 Yuxing 3,055,588 2,014,987 8,161,271 7,016,208 Sales VIEs 18,755,772 15,450,955 38,453,879 38,670,247 Consolidated $ 86,068,404 $ 85,826,689 $ 178,567,978 $ 186,213,269 Operating income (loss): Jinong $ (4,562,066 ) $ (4,567,306 ) $ (9,626,306 ) $ (10,335,081 ) Gufeng (11,120,630 ) (44,325,347 ) (71,940,923 ) (77,454,456 ) Yuxing 174,453 5,003 462,879 300,952 Sales VIEs 1,348,375 812,350 107,604 5,653,582 Reconciling item (1) - - - - Reconciling item (2) - (389,072 ) - (1,240,286 ) Consolidated $ (14,159,868 ) $ (48,464,372 ) $ (80,996,746 ) $ (83,075,289 ) Net income (loss): Jinong $ (4,546,023 ) $ (5,388,358 ) $ (9,836,830 ) $ (10,245,799 ) Gufeng (11,179,039 ) (44,538,320 ) (72,188,675 ) (77,733,209 ) Yuxing 174,804 4,204 479,363 299,702 Sales VIEs 1,023,254 89,265 (710,755 ) 4,312,975 Reconciling item (1) 5 (1 ) 7 6 Reconciling item (2) (287,608 ) (389,072 ) (3,534,467 ) (1,240,286 ) Reconciling item (3) (181 ) (28 ) (13,008 ) (12,379 ) Consolidated $ (14,814,788 ) $ (50,222,309 ) $ (85,804,365 ) $ (84,618,989 ) Depreciation and Amortization: Jinong $ 206,810 $ 190,739 $ 601,680 $ 572,587 Gufeng 326,677 521,051 935,344 1,557,909 Yuxing 318,190 296,863 928,761 886,512 Sales VIEs 131,354 182,658 384,717 526,096 Consolidated $ 983,031 $ 1,172,886 $ 2,850,502 $ 3,543,104 Interest expense: Jinong - 59 - 25,659 Gufeng 57,316 76,248 181,269 215,241 Yuxing - - - - Sales VIEs - (87,497 ) - (164,594 ) Consolidated $ 57,316 $ (11,190 ) $ 181,269 $ 76,306 Capital Expenditure: Jinong $ 2,020 $ 57 $ 59,068 $ 25,005 Gufeng 38,380 698 74,133 698 Yuxing 106,540 268 106,540 25,852 Sales VIEs 23,970 14,654 23,970 14,654 Consolidated $ 170,910 $ 15,677 $ 263,711 $ 66,210 As of March 31, June 30, 2021 2020 Identifiable assets: Jinong $ 80,082,353 $ 83,055,679 Gufeng 155,355,263 213,038,203 Yuxing 37,814,171 34,310,053 Sales VIEs 52,403,577 44,715,491 Reconciling item (1) (35,491,191 ) (33,157,364 ) Reconciling item (2) 166,121 166,121 Consolidated $ 290,330,294 $ 342,128,183 (1) Reconciling amounts refer to the unallocated assets or expenses of Green New Jersey. (2) Reconciling amounts refer to the unallocated assets or expenses of the Parent Company. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 16 – COMMITMENTS AND CONTINGENCIES On July 1, 2020, Jinong signed an office lease with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as Chairman. Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The lease provides for a two-year term effective as of July 1, 2020 with monthly rent of RMB24,480 (approximately $3,667). In February 2004, Tianjuyuan signed a fifty-year lease with the village committee of Dong Gao Village and Zhen Nan Zhang Dai Village in the Beijing Ping Gu District, at a monthly rent of RMB 2,958(approximately $443). Accordingly, the Company recorded an aggregate of $36,994 and $35,201 as rent expenses from these committed property leases for the nine-month periods ended March 31, 2021 and 2020, respectively. The contingent rent expenses herein for the next five twelve-month periods ended March 31, are as follows: Years ending March 31, 2022 $ 49,326 2023 49,326 2024 49,326 2025 49,326 2026 49,326 |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 17 – VARIABLE INTEREST ENTITIES In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision-making ability. All VIEs with which a company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. Green Nevada through one of its subsidiaries, Jinong, entered into a series of agreements (the “VIE Agreements”) with Yuxing for it to qualify as a VIE, effective June 16, 2013. The Company has concluded, based on the contractual arrangements, that Yuxing is a VIE and that the Company’s wholly-owned subsidiary, Jinong, absorbs much of the risk of loss from the activities of Yuxing, thereby enabling the Company, through Jinong, to receive a majority of Yuxing expected residual returns. On June 30, 2016 and January 1, 2017, the Company, through its wholly-owned subsidiary Jinong, entered into strategic acquisition agreements and into a series of contractual agreements to qualify as VIEs with the shareholders of the sales VIE Companies. Jinong, the sales VIE Companies, and the shareholders of the sales VIE Companies also entered into a series of contractual agreements for the sales VIE Companies to qualify as VIEs (the “VIE Agreements”). On November 30, 2017, the Company, through its wholly-owned subsidiary Jinong, exited the VIE agreements with the shareholders of Zhenbai. As a result of these contractual arrangements, with Yuxing and the sales VIE Companies the Company is entitled to substantially all the economic benefits of Yuxing and the VIE Companies. The following financial statement amounts and balances of the VIEs were included in the accompanying unaudited condensed consolidated financial statements as of March 31, 2021 and June 30, 2020: March 31, June 30, 2021 2020 ASSETS Current Assets Cash and cash equivalents $ 617,851 $ 712,301 Accounts receivable, net 35,557,185 33,727,918 Inventories 30,612,244 22,995,075 Other current assets 1,393,000 593,942 Related party receivable 165,972 66 Advances to suppliers 963,077 520,901 Total Current Assets 69,309,329 58,550,203 Plant, Property and Equipment, Net 8,501,436 8,513,395 Other assets 96,131 59,575 Intangible Assets, Net 9,603,151 9,391,626 Goodwill 2,707,701 2,510,745 Total Assets $ 90,217,749 $ 79,025,544 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable 20,163,566 16,416,828 Customer deposits 836,465 86,430 Accrued expenses and other payables 8,661,699 6,996,544 Amount due to related parties 45,064,229 41,549,931 Total Current Liabilities $ 74,725,959 $ 65,049,733 Total Liabilities $ 74,725,959 $ 65,049,733 Stockholders’ equity 15,491,790 13,975,811 Total Liabilities and Stockholders’ Equity $ 90,217,749 $ 79,025,544 Three Months Ended 2021 2020 Revenue $ 21,811,360 $ 17,465,942 Expenses 20,613,304 17,372,472 Net income (loss) $ 1,198,056 $ 93,470 Nine Months Ended 2021 2020 Revenue $ 46,615,150 $ 45,686,455 Expenses 46,846,543 41,073,778 Net income (loss) $ (231,393 ) $ 4,612,677 |
Business Combinations
Business Combinations | 9 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | NOTE 18 – BUSINESS COMBINATIONS On June 30, 2016, the Company, through its wholly-owned subsidiary Jinong, entered into strategic acquisition agreements and also into a series of contractual agreements to qualify as VIEs with the shareholders of Shaanxi Lishijie Agrochemical Co., Ltd., Songyuan Jinyangguang Sannong Service Co., Ltd., Shenqiu County Zhenbai Agriculture Co., Ltd., Weinan City Linwei District Wangtian Agricultural Materials Co., Ltd., Aksu Xindeguo Agricultural Materials Co., Ltd., and Xinjiang Xinyulei Eco-agriculture Science and Technology Co., Ltd. Subsequently, on January 1, 2017, Jinong entered into similar strategic acquisition agreements and a series of contractual agreements to qualify as VIEs with the shareholders of Sunwu County Xiangrong Agricultural Materials Co., Ltd., and Anhui Fengnong Seed Co., Ltd. On November 30, 2017, the Company, through its wholly-owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Zhenbai. The VIE Agreements are as follows: Entrusted Management Agreements Pursuant to the terms of certain Entrusted Management Agreements dated June 30, 2016 and January 1, 2017, between Jinong and the shareholders of the sales VIE Companies (the “Entrusted Management Agreements”), the sales VIE Companies and their shareholders agreed to entrust the operations and management of its business to Jinong. According to the Entrusted Management Agreement, Jinong possesses the full and exclusive right to manage the sales VIE Companies’ operations, assets and personnel, has the right to control all the sales VIE Companies’ cash flows through an entrusted bank account, is entitled to the sales VIE Companies’ net profits as a management fee, is obligated to pay all the sales VIE Companies’ payables and loan payments, and bears all losses of the sales VIE Companies. The Entrusted Management Agreements will remain in effect until (i) the parties mutually agree to terminate the agreement; (ii) the dissolution of the sales VIE Companies; or (iii) Jinong acquires all the assets or equity of the sales VIE Companies (as more fully described below under “Exclusive Option Agreements”). Exclusive Technology Supply Agreements Pursuant to the terms of certain Exclusive Technology Supply Agreements dated June 30, 2016 and January 1, 2017, between Jinong and the sales VIE companies (the “Exclusive Technology Supply Agreements”), Jinong is the exclusive technology provider to the sales VIE companies. The sales VIE companies agreed to pay Jinong all fees payable for technology supply prior to making any payments under the Entrusted Management Agreement. The Exclusive Technology Supply Agreements shall remain in effect until (i) the parties mutually agree to terminate the agreement; (ii) the dissolution of the sales VIE companies; or (iii) Jinong acquires the sales VIE companies (as more fully described below under “Exclusive Option Agreements”). Shareholder’s Voting Proxy Agreements Pursuant to the terms of certain Shareholder’s Voting Proxy Agreements dated June 30, 2016 and January 1, 2017, among Jinong and the shareholders of the sales VIE companies (the “Shareholder’s Voting Proxy Agreements”), the shareholders of the sales VIE companies irrevocably appointed Jinong as their proxy to exercise on such shareholders’ behalf all of their voting rights as shareholders pursuant to PRC law and the Articles of Association of the sales VIE companies, including the appointment and election of directors of the sales VIE companies. Jinong agreed that it shall maintain a board of directors, the composition and appointment of which shall be approved by the Board of the Company. The Shareholder’s Voting Proxy Agreements will remain in effect until Jinong acquires all the assets or equity of the sales VIE companies. Exclusive Option Agreements Pursuant to the terms of certain Exclusive Option Agreements dated June 30, 2016 and January 1, 2017, among Jinong, the sales VIE companies, and the shareholders of the sales VIE companies (the “Exclusive Option Agreements”), the shareholders of the sales VIE companies granted Jinong an irrevocable and exclusive purchase option (the “Option”) to acquire the sales VIE companies’ equity interests and/or remaining assets, but only to the extent that the acquisition does not violate limitations imposed by PRC law on such transactions. The Option is exercisable at any time at Jinong’s discretion so long as such exercise and subsequent acquisition of the sales VIE companies does not violate PRC law. The consideration for the exercise of the Option is to be determined by the parties and memorialized in the future by definitive agreements setting forth the kind and value of such consideration. Jinong may transfer all rights and obligations under the Exclusive Option Agreements to any third parties without the approval of the shareholders of the sales VIE companies so long as a written notice is provided. The Exclusive Option Agreements may be terminated by mutual agreements or by 30 days written notice by Jinong. Equity Pledge Agreements Pursuant to the terms of certain Equity Pledge Agreements dated June 30, 2016 and January 1, 2017, among Jinong and the shareholders of the sales VIE companies (the “Pledge Agreements”), the shareholders of the sales VIE companies pledged all of their equity interests in the sales VIE companies to Jinong, including the proceeds thereof, to guarantee all of Jinong’s rights and benefits under the Entrusted Management Agreements, the Exclusive Technology Supply Agreements, the Shareholder’ Voting Proxy Agreements and the Exclusive Option Agreements. Prior to termination of the Pledge Agreements, the pledged equity interests cannot be transferred without Jinong’s prior written consent. The Pledge Agreements may be terminated only upon the written agreement of the parties. Non-Compete Agreements Pursuant to the terms of certain Non-Compete Agreements dated June 30, 2016 and January 1, 2017, among Jinong and the shareholders of the sales VIE companies (the “Non-Compete Agreements”), the shareholders of the sales VIE companies agreed that during the period beginning on the initial date of their services with Jinong, and ending five (5) years after termination of their services with Jinong, without Jinong’s prior written consent, they will not provide services or accept positions including but not limited to partners, directors, shareholders, managers, proxies or consultants, provided by any profit making organizations with businesses that may compete with Jinong. They will not solicit or interfere with any of the Jinong’s customers, or solicit, induce, recruit or encourage any person engaged or employed by Jinong to terminate his or her service or engagement. If the shareholders of the sales VIE companies breach the non-compete obligations contained therein, Jinong is entitled to all loss and damages; if the damages are difficult to determine, remedies bore the shareholders of the sales VIE companies shall be no less than 50% of the salaries and other expenses Jinong provided in the past. The Company entered these VIE Agreements as a way for the Company to have more control over the distribution of its products. The transactions are accounted for as business combinations in accordance with ASC 805. A summary of the purchase price allocations at fair value is below: For acquisitions made on June 30, 2016: Cash $ 708,737 Accounts receivable 6,422,850 Advances to suppliers 1,803,180 Prepaid expenses and other current assets 807,645 Inventories 7,787,043 Machinery and equipment 140,868 Intangible assets 270,900 Other assets 3,404,741 Goodwill 3,158,179 Accounts payable (3,962,670 ) Customer deposits (3,486,150 ) Accrued expenses and other payables (4,653,324 ) Taxes payable (16,912 ) Purchase price $ 12,385,087 A summary of the purchase consideration paid is below: Cash $ 5,568,500 Convertible notes 6,671,769 Derivative liability 144,818 $ 12,385,087 The cash component of the purchase price for these acquisitions made on June 30, 2016 was paid in July and August 2016. For acquisitions made on January 1, 2017: Working Capital $ 941,192 Machinery and equipment 222,875 Intangible assets 1440 Goodwill 684,400 Customer Relationship 522,028 Non-compete Agreement 392,852 Purchase price $ 2,764,787 A summary of the purchase consideration paid is below: Cash $ 1,201,888 Convertible notes 1,559,350 Derivative liability 3,549 $ 2,764,787 The cash component of the purchase price for these acquisitions made on January 1, 2017 was paid during March 2017. On November 30, 2017, the Company, through its wholly-owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Zhenbai. In return, the shareholders of Zhenbai agreed to tender the whole payment consideration in the SAA back to the Company with early termination penalties. The convertible notes paid to Zhenbai’s shareholders and the accrued interest has been forfeited. For the discontinuation of Zhenbai made on November 30, 2017, the Company gave up the control of the following assets in Zhenbai: Working Capital $ 1,179,352 Intangible assets 896,559 Customer Relationship 684,727 Non-compete Agreement 211,833 Goodwill 538,488 Total Asset $ 2,614,401 In return, the purchase consideration returned to the Company from Zhenbai’s shareholders is summarized below: Cash $ 461,330 Interest Payable 83,039 Convertible notes 1,724,683 Derivative liability 13,353 Total Payback $ 2,282,406 Net Loss $ (331,995 ) |
Other Events
Other Events | 9 Months Ended |
Mar. 31, 2021 | |
Other Events [Abstract] | |
OTHER EVENTS | NOTE 19 – OTHER EVENTS In December 2019, a novel strain of coronavirus was reported to have surfaced in Wuhan, China, which was continuing to spread throughout China and other parts of the world, including the United States. On January 30, 2020, the World Health Organization declared the outbreak of the COVID-19 a “Public Health Emergency of International Concern,” and on March 11, 2020, the World Health Organization characterized the outbreak as a “pandemic”. The epidemic has resulted in quarantines, travel restrictions, and the temporary closure of office buildings and facilities in China and in the U.S. Xi’an City, where our headquarters are located, is one of the most affected areas in China. The Company has been following the orders of local government and health authorities to minimize exposure risk for its employees, including the closures of its offices and having employees work remotely from January of 2020 until March of 2020. An occurrence of an uncontrollable event such as the COVID-19 pandemic may negatively affect our operations and financial results. Substantially all our revenues are generated in China. Consequently, our results of operations were adversely and materially affected by COVID-19. Any potential impact to our results will depend on, to a large extent, future developments and new information that may emerge regarding the duration and severity of COVID-19 and the actions taken by government authorities and other entities to contain COVID-19 or treat its impact, almost all of which are beyond our control. Potential impacts include, but are not limited to, the following: ● temporary closure of offices, travel restrictions or suspension of transportation of our products to our customers and our suppliers have been negatively affected, and could continue to be negatively affected, on their ability to supply our demands; ● our customers that are negatively impacted by the outbreak of COVID-19 may reduce their budgets to purchase our products and services, which may materially adversely impact our revenue; ● we may have to provide significant sales incentives to our customers in response to the outbreak, which may in turn materially adversely affect our financial condition and operating results; ● the business operations of our customers and suppliers have been and could continue to be negatively impacted by the outbreak, result in loss of customers or disruption of our services, which may in turn materially adversely affect our financial condition and operating results; ● any disruption of our supply chain, logistics providers or customers could adversely impact our business and results of operations, including causing our suppliers to cease manufacturing products for a period or materially delay delivery to customers, which may also lead to loss of customers, as well as reputational, competitive and business harm to us; ● many of our customers, distributors, suppliers and other partners are individuals and small and medium-sized enterprises (SMEs), which may not have strong cash flows or be well capitalized, and may be vulnerable to an epidemic outbreak and slowing macroeconomic conditions. If the SMEs that we work with cannot weather COVID-19 and the resulting economic impact, or cannot resume business as usual after a prolonged outbreak, our revenues and business operations may be materially and adversely impacted; ● the global stock markets have experienced, and may continue to experience, significant decline from the COVID-19 outbreak, which could materially adversely affect our stock price; Because of the uncertainty surrounding the COVID-19 outbreak, the financial impact related to the outbreak of and response to the COVID-19 cannot be reasonably estimated at this time, but our results for the full fiscal year of 2020 and first half fiscal year of 2021 had been adversely affected. In general, our business could be adversely affected by the effects of epidemics, including, but not limited to, the COVID-19, avian influenza, severe acute respiratory syndrome (SARS), the influenza A virus, the Ebola virus, or other outbreaks. In response to an epidemic or other outbreaks, government and other organizations may adopt regulations and policies that could lead to severe disruption to our daily operations, including temporary closure of our offices and other facilities. These severe conditions may cause us and/or our partners to make internal adjustments, including but not limited to, temporarily closing business, limiting business hours, and setting restrictions on travel and/or visits with clients and partners for a prolonged period. Various impacts arising from severe conditions may cause business disruption, resulting in material, adverse effects to our financial condition and results of operations. We are taking significant measures to mitigate the financial and operational impacts of COVID-19 as well as additional actions to improve our liquidity through cost reduction and conservation measures. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 20 – SUBSEQUENT EVENTS In accordance with ASC 855-10, the Company has analyzed its operations after March 31, 2021 to the date these unaudited condensed consolidated financial statements were available to be issued and has determined that there were no significant subsequent events or transactions that would require recognition or disclosure in the unaudited condensed consolidated financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Principle of consolidation | Principle of consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Green New Jersey, Jinong, Gufeng, Tianjuyuan, and the VIE Companies. All significant inter-company accounts and transactions have been eliminated in consolidation. Effective June 16, 2013, Yuxing was converted from being a wholly-owned foreign enterprise 100% owned by Jinong to a domestic enterprise 100% owned one natural person, who is not affiliated to the Company (“Yuxing’s Owner”). Effective the same day, Yuxing’s Owner entered into a series of contractual agreements with Jinong pursuant to which Yuxing became the VIE of Jinong. |
VIE assessment | VIE assessment A VIE is an entity (1) that has total equity at risk that is not sufficient to finance its activities without additional subordinated financial support from other entities, (2) where the group of equity holders does not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance, or the obligation to absorb the entity’s expected losses or the right to receive the entity’s expected residual returns, or both, or (3) where the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. To determine if an entity is considered a VIE, the Company first performs a qualitative analysis, which requires certain subjective decisions regarding its assessments, including, but not limited to, the design of the entity, the variability that the entity was designed to create and pass along to its interest holders, the rights of the parties, and the purpose of the arrangement. If the Company cannot conclude after a qualitative analysis whether an entity is a VIE, it performs a quantitative analysis. The qualitative analysis considered the design of the entity, the risks that cause variability, the purpose for which the entity was created, and the variability that the entity was designed to pass along to its variable interest holders. When the primary beneficiary could not be identified through a qualitative analysis, we used internal cash flow models to compute and allocate expected losses or expected residual returns to each variable interest holder based upon the relative contractual rights and preferences of each interest holder in the VIE’s capital structure. |
Use of estimates | Use of estimates The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to the recent pandemic outbreak of the novel coronavirus (“COVID-19”). |
Leases | Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at commencement based on the present value of lease payments over the lease term. As the implicit rate is typically not readily determinable in the Company’s lease agreements, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recognized on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Additionally, the Company accounts for lease and non-lease components as a single lease component for its identified asset classes. As of March 31, 2021, the Company does not have any material leases for the implementation of ASC 842. |
Cash and cash equivalents and concentration of cash | Cash and cash equivalents and concentration of cash For statement of cash flows purposes, the Company considers all cash on hand and in banks, certificates of deposit with state owned banks in the PRC and banks in the United States, and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. The Company maintains large sums of cash in three major banks in China. The aggregate cash in such accounts and on hand as of March 31, 2021 and June 30, 2020 were $5,016,399 and $11,866,308, respectively. There is no insurance securing these deposits in China. In addition, the Company also had $59,189 and $68,470 in cash in two banks in the United States as of March 31, 2021 and June 30, 2020, respectively. Cash overdraft as of balance sheet date will be reflected as liabilities in the balance sheet. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. |
Accounts receivable | Accounts receivable Management regularly reviews the composition of accounts receivable and analyzes customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves at each year-end. Accounts considered uncollectible are provisioned for /written off based upon management’s assessment. As of March 31, 2021, and June 30, 2020, the Company had accounts receivable of $125,733,691 and $105,693,326, net of allowance for doubtful accounts of $37,135,352 and $38,466,200, respectively. The company recorded bad debt expense in the amount of $61 million and $76 million for the nine months ended March 31, 2021 and 2020, respectively. The Company adopts no policy to accept product returns after the sales delivery. |
Inventories | Inventories Inventory is valued at the lower of cost (determined on a weighted average basis) or market. Inventories consist of raw materials, work in process, finished goods and packaging materials. The Company reviews its inventories regularly for possible obsolete goods and establishes reserves when determined necessary. As of March 31, 2021, and 2020, the Company had no reserve for obsolete goods. The company confirmed the loss of $31 million and $25 million of inventories for the nine months ended March 31, 2021 and 2020, respectively. |
Intangible Assets | Intangible Assets The Company records intangible assets acquired individually or as part of a group at fair value. Intangible assets with definitive lives are amortized over the useful life of the intangible asset, which is the period over which the asset is expected to contribute directly or indirectly to the entity’s future cash flows. The Company evaluates intangible assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. The Company has not recorded impairment of intangible assets as of March 31, 2021 and 2020, respectively. |
Customer deposits | Customer deposits Payments received before all the relevant criteria for revenue recognition are satisfied are recorded as customer deposits. When all revenue recognition criteria are met, the customer deposits are recognized as revenue. As of March 31, 2021, and June 30, 2020, the Company had customer deposits of $7,368,610 and $7,342,590, respectively. |
Earnings per share | Earnings per share Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards. The components of basic and diluted earnings per share consist of the following: Three Months Ended March 31 2021 2020 Net Income (loss) for Basic Earnings Per Share $ (14,814,788 ) $ (50,222,309 ) Basic Weighted Average Number of Shares 6,350,129 6,143,159 Net Income (loss) Per Share – Basic $ (2.33 ) $ (8.18 ) Net Income (loss) for Diluted Earnings Per Share $ (14,814,788 ) $ (50,222,309 ) Diluted Weighted Average Number of Shares 6,350,129 6,143,159 Net Income (loss) Per Share – Diluted $ (2.33 ) $ (8.18 ) Nine Months Ended March 31, 2021 2020 Net Income (loss) for Basic Earnings Per Share $ (85,804,365 ) $ (83,277,476 ) Basic Weighted Average Number of Shares 6,350,129 5,371,420 Net Income (loss) Per Share – Basic $ (13.51 ) $ (15.75 ) Net Income (loss) for Diluted Earnings Per Share $ (85,804,365 ) $ (83,277,476 ) Diluted Weighted Average Number of Shares 6,350,129 5,371,420 Net Income (loss) Per Share – Diluted $ (13.51 ) $ (15.75 ) |
Recent accounting pronouncements | Recent accounting pronouncements In August 2018, the FASB issued ASU 2018-13, “Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements from Accounting Standards Codification (“ASC”) 820, “Fair Value Measurement.” ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The effect of the adoption of ASU 2018-13 will be a change to the disclosure requirements for certain fair value measurements. In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” ASU 2018-15 requires customers in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40, “Intangibles—Goodwill and Other—Internal-Use Software,” to determine which implementation costs may be capitalized. ASU 2018-15 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The amendments in ASU 2018-15 can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company does not expect the adoption of ASU 2018-15 to have a material impact on its unaudited condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” ASU 2019-12 eliminates certain exceptions within ASC 740, “Income Taxes,” and clarifies certain aspects of ASC 740 to promote consistency among reporting entities. ASU 2019-12 is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company is evaluating the impact that adoption of ASU 2019-12 will have on its unaudited condensed consolidated financial statements. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of basic and diluted earnings per share | Three Months Ended March 31 2021 2020 Net Income (loss) for Basic Earnings Per Share $ (14,814,788 ) $ (50,222,309 ) Basic Weighted Average Number of Shares 6,350,129 6,143,159 Net Income (loss) Per Share – Basic $ (2.33 ) $ (8.18 ) Net Income (loss) for Diluted Earnings Per Share $ (14,814,788 ) $ (50,222,309 ) Diluted Weighted Average Number of Shares 6,350,129 6,143,159 Net Income (loss) Per Share – Diluted $ (2.33 ) $ (8.18 ) Nine Months Ended March 31, 2021 2020 Net Income (loss) for Basic Earnings Per Share $ (85,804,365 ) $ (83,277,476 ) Basic Weighted Average Number of Shares 6,350,129 5,371,420 Net Income (loss) Per Share – Basic $ (13.51 ) $ (15.75 ) Net Income (loss) for Diluted Earnings Per Share $ (85,804,365 ) $ (83,277,476 ) Diluted Weighted Average Number of Shares 6,350,129 5,371,420 Net Income (loss) Per Share – Diluted $ (13.51 ) $ (15.75 ) |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | March 31, June 30, 2021 2020 Raw materials $ 21,061,453 $ 43,177,071 Supplies and packing materials $ 392,847 $ 465,746 Work in progress $ 266,735 $ 374,756 Finished goods $ 42,296,920 $ 54,903,508 Total $ 64,017,955 $ 98,921,081 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | March 31, June 30, 2021 2020 Building and improvements $ 40,840,859 $ 37,799,650 Auto 3,510,165 3,207,619 Machinery and equipment 19,092,058 17,601,852 Total property, plant and equipment 63,443,082 58,609,121 Less: accumulated depreciation (40,795,150 ) (35,680,787 ) Total $ 22,647,933 $ 22,928,334 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Intangible Assets (Tables) [Line Items] | |
Schedule of intangible assets | March 31, June 30, 2021 2020 Land use rights, net $ 9,361,306 $ 8,850,905 Technology patent, net 1,887 2,069 Customer relationships, net 763,582 908,933 Non-compete agreement 92,117 230,669 Trademarks 6,210,820 5,759,049 Total $ 16,429,712 $ 15,751,625 |
Schedule of finite-lived intangible assets, future amortization expense | Twelve Months Ended on March 31, Expense 2022 698,360 2023 591,575 2024 474,661 2025 367,559 2026 354,472 |
Land Use Rights [Member] | |
Intangible Assets (Tables) [Line Items] | |
Schedule of intangible assets | March 31, June 30, 2021 2020 Land use rights $ 12,439,333 11,534,506 Less: accumulated amortization (3,078,027 ) (2,683,601 ) Total land use rights, net $ 9,361,306 8,850,905 |
Technology Patent [Member] | |
Intangible Assets (Tables) [Line Items] | |
Schedule of intangible assets | March 31, June 30, 2021 2020 Technology know-how $ 2,304,980 $ 2,137,317 Less: accumulated amortization (2,303,094 ) (2,135,248 ) Total technology know-how, net $ 1,886 $ 2,069 |
Customer Relationships [Member] | |
Intangible Assets (Tables) [Line Items] | |
Schedule of intangible assets | March 31, June 30, 2021 2020 Customer relationships $ 12,166,737 $ 11,281,739 Less: accumulated amortization (11,403,156 ) (10,372,806 ) Total customer relationships, net $ 763,581 $ 908,933 |
Non-compete agreement [Member] | |
Intangible Assets (Tables) [Line Items] | |
Schedule of intangible assets | March 31, June 30, 2021 2020 Non-compete agreement $ 1,245,740 $ 1,155,127 Less: accumulated amortization (1,153,623 ) (924,458 ) Total non-compete agreement, net $ 92,117 $ 230,669 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Other Assets Noncurrent [Abstract] | |
Schedule of estimated amortization expenses of lease advance payments | Twelve months ending March 31, 2023 $ 2,048,655 2024 $ 2,048,655 2025 $ 2,048,655 2026 and thereafter $ 4,115,588 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other payables | March 31, June 30, 2021 2020 Payroll and welfare payable $ 182,282 $ 168,705 Accrued expenses 8,935,041 7,640,130 Other payables 7,127,685 6,211,818 Other levy payable 127,980 118,671 Total $ 16,372,988 $ 14,139,324 |
Loan Payables (Tables)
Loan Payables (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of loan payables | No. Payee Loan period per agreement Interest Rate December 31, 1 Postal Saving Bank of China - Pinggu Branch June 17, 2020-June 16, 2021 5.66 % 2,289,000 2 Beijing Bank - Pinggu Branch June 22, 2020-June 22, 2021 5.22 % 1,526,000 3 Postal Saving Bank of China - Pinggu Branch August 6, 2020-August 5, 2021 5.66 % 305,200 Total $ 4,120,200 |
Convertible Notes Payable (Tabl
Convertible Notes Payable (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of convertible notes payable | No. Related Acquisitions of Sales VIEs Issuance Date Maturity Notional Conversion Notional Amount 1 Wangtian, Lishijie, Xindeguo, Xinyulei, Jinyangguang June 30, 2016 June 30, 2019 3 % $ 5.00 39,000,000 2 Fengnong, Xiangrong January 1, 2017 December 31, 2019 3 % $ 5.00 12,000,000 |
Taxes Payable (Tables)
Taxes Payable (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of income taxes and related payables | March 31, June 30, 2021 2020 VAT provision $ (229,408 ) $ (257,068 ) Income tax payable 2,557,354 1,704,543 Other levies 1,432,647 1,187,442 Repatriation tax 29,010,535 29,010,535 Total $ 32,771,128 $ 31,645,452 |
Schedule of provision for income taxes | March 31, June 30, 2021 2020 Current tax - foreign $ 3,283,395 $ 2,344,928 Deferred tax - - Total $ 3,283,395 $ 2,344,928 |
Schedule of deferred tax assets | March 31, June 30, 2021 2020 Deferred tax assets Deferred Tax Benefit 35,842,375 33,743,546 Valuation allowance (35,842,375 ) (33,743,546 ) Total deferred tax assets $ - - |
Schedule of effective income tax rate reconciliation | China United States 15% - 25% 21% Total Pretax income (loss) $ (81,169,349 ) (1,351,622 ) $ (82,520,971 ) Expected income tax expense (benefit) (20,292,337 ) 25.0 % (283,841 ) 21.0 % (20,576,178 ) High-tech income benefits on Jinong 2,667,471 (3.3 )% - - 2,667,471 Losses from subsidiaries in which no benefit is recognized 18,725,422 (23.1 )% - - 18,725,422 Change in valuation allowance on deferred tax asset from US tax benefit 2,182,839 (2.7 )% 283,841 (21.0 )% 2,466,680 Actual tax expense $ 3,283,395 (4.0 )% $ - - % $ 3,283,395 (4.0 )% China United States Total Pretax income (loss) $ (82,037,196 ) (1,240,280 ) $ (83,277,476 ) Expected income tax expense (benefit) (20,509,299 ) 25.0 % (260,459 ) 21.0 % (20,769,758 ) High-tech income benefits on Jinong 2,561,450 (3.1 )% - - 2,561,450 Losses from subsidiaries in which no benefit is recognized 19,289,362 (23.5 )% - - 19,289,362 Change in valuation allowance on deferred tax asset from US tax benefit - 260,459 (21.0 )% 260,459 Actual tax expense $ 1,341,513 (1.6 )% $ - - % $ 1,341,513 (1.6 )% |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | Three Months Three Months Nine Months Nine Months March 31, 2021 March 31, 2020 March 31, March 31, Revenues from unaffiliated customers: Jinong $ 15,818,610 $ 11,266,437 $ 45,249,797 $ 44,842,738 Gufeng 48,438,434 57,094,310 86,703,031 95,684,076 Yuxing 3,055,588 2,014,987 8,161,271 7,016,208 Sales VIEs 18,755,772 15,450,955 38,453,879 38,670,247 Consolidated $ 86,068,404 $ 85,826,689 $ 178,567,978 $ 186,213,269 Operating income (loss): Jinong $ (4,562,066 ) $ (4,567,306 ) $ (9,626,306 ) $ (10,335,081 ) Gufeng (11,120,630 ) (44,325,347 ) (71,940,923 ) (77,454,456 ) Yuxing 174,453 5,003 462,879 300,952 Sales VIEs 1,348,375 812,350 107,604 5,653,582 Reconciling item (1) - - - - Reconciling item (2) - (389,072 ) - (1,240,286 ) Consolidated $ (14,159,868 ) $ (48,464,372 ) $ (80,996,746 ) $ (83,075,289 ) Net income (loss): Jinong $ (4,546,023 ) $ (5,388,358 ) $ (9,836,830 ) $ (10,245,799 ) Gufeng (11,179,039 ) (44,538,320 ) (72,188,675 ) (77,733,209 ) Yuxing 174,804 4,204 479,363 299,702 Sales VIEs 1,023,254 89,265 (710,755 ) 4,312,975 Reconciling item (1) 5 (1 ) 7 6 Reconciling item (2) (287,608 ) (389,072 ) (3,534,467 ) (1,240,286 ) Reconciling item (3) (181 ) (28 ) (13,008 ) (12,379 ) Consolidated $ (14,814,788 ) $ (50,222,309 ) $ (85,804,365 ) $ (84,618,989 ) Depreciation and Amortization: Jinong $ 206,810 $ 190,739 $ 601,680 $ 572,587 Gufeng 326,677 521,051 935,344 1,557,909 Yuxing 318,190 296,863 928,761 886,512 Sales VIEs 131,354 182,658 384,717 526,096 Consolidated $ 983,031 $ 1,172,886 $ 2,850,502 $ 3,543,104 Interest expense: Jinong - 59 - 25,659 Gufeng 57,316 76,248 181,269 215,241 Yuxing - - - - Sales VIEs - (87,497 ) - (164,594 ) Consolidated $ 57,316 $ (11,190 ) $ 181,269 $ 76,306 Capital Expenditure: Jinong $ 2,020 $ 57 $ 59,068 $ 25,005 Gufeng 38,380 698 74,133 698 Yuxing 106,540 268 106,540 25,852 Sales VIEs 23,970 14,654 23,970 14,654 Consolidated $ 170,910 $ 15,677 $ 263,711 $ 66,210 As of March 31, June 30, 2021 2020 Identifiable assets: Jinong $ 80,082,353 $ 83,055,679 Gufeng 155,355,263 213,038,203 Yuxing 37,814,171 34,310,053 Sales VIEs 52,403,577 44,715,491 Reconciling item (1) (35,491,191 ) (33,157,364 ) Reconciling item (2) 166,121 166,121 Consolidated $ 290,330,294 $ 342,128,183 (1) Reconciling amounts refer to the unallocated assets or expenses of Green New Jersey. (2) Reconciling amounts refer to the unallocated assets or expenses of the Parent Company. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of payments for lease expenses | Years ending March 31, 2022 $ 49,326 2023 49,326 2024 49,326 2025 49,326 2026 49,326 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of VIEs consolidated financial statements | March 31, June 30, 2021 2020 ASSETS Current Assets Cash and cash equivalents $ 617,851 $ 712,301 Accounts receivable, net 35,557,185 33,727,918 Inventories 30,612,244 22,995,075 Other current assets 1,393,000 593,942 Related party receivable 165,972 66 Advances to suppliers 963,077 520,901 Total Current Assets 69,309,329 58,550,203 Plant, Property and Equipment, Net 8,501,436 8,513,395 Other assets 96,131 59,575 Intangible Assets, Net 9,603,151 9,391,626 Goodwill 2,707,701 2,510,745 Total Assets $ 90,217,749 $ 79,025,544 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable 20,163,566 16,416,828 Customer deposits 836,465 86,430 Accrued expenses and other payables 8,661,699 6,996,544 Amount due to related parties 45,064,229 41,549,931 Total Current Liabilities $ 74,725,959 $ 65,049,733 Total Liabilities $ 74,725,959 $ 65,049,733 Stockholders’ equity 15,491,790 13,975,811 Total Liabilities and Stockholders’ Equity $ 90,217,749 $ 79,025,544 Three Months Ended 2021 2020 Revenue $ 21,811,360 $ 17,465,942 Expenses 20,613,304 17,372,472 Net income (loss) $ 1,198,056 $ 93,470 Nine Months Ended 2021 2020 Revenue $ 46,615,150 $ 45,686,455 Expenses 46,846,543 41,073,778 Net income (loss) $ (231,393 ) $ 4,612,677 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of purchase price allocations at fair value | Cash $ 708,737 Accounts receivable 6,422,850 Advances to suppliers 1,803,180 Prepaid expenses and other current assets 807,645 Inventories 7,787,043 Machinery and equipment 140,868 Intangible assets 270,900 Other assets 3,404,741 Goodwill 3,158,179 Accounts payable (3,962,670 ) Customer deposits (3,486,150 ) Accrued expenses and other payables (4,653,324 ) Taxes payable (16,912 ) Purchase price $ 12,385,087 Working Capital $ 941,192 Machinery and equipment 222,875 Intangible assets 1440 Goodwill 684,400 Customer Relationship 522,028 Non-compete Agreement 392,852 Purchase price $ 2,764,787 Working Capital $ 1,179,352 Intangible assets 896,559 Customer Relationship 684,727 Non-compete Agreement 211,833 Goodwill 538,488 Total Asset $ 2,614,401 |
Schedule of purchase consideration paid for VIE | Cash $ 5,568,500 Convertible notes 6,671,769 Derivative liability 144,818 $ 12,385,087 Cash $ 1,201,888 Convertible notes 1,559,350 Derivative liability 3,549 $ 2,764,787 Cash $ 461,330 Interest Payable 83,039 Convertible notes 1,724,683 Derivative liability 13,353 Total Payback $ 2,282,406 Net Loss $ (331,995 ) |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) | Jun. 16, 2013 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 |
Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Ownership percentage, description | Yuxing was converted from being a wholly-owned foreign enterprise 100% owned by Jinong to a domestic enterprise 100% owned one natural person, who is not affiliated to the Company (“Yuxing’s Owner”). Effective the same day, Yuxing’s Owner entered into a series of contractual agreements with Jinong pursuant to which Yuxing became the VIE of Jinong. | |||
Aggregate cash in accounts and on hand | $ 5,016,399 | $ 11,866,308 | ||
Accounts receivable | 125,733,691 | 105,693,326 | ||
Allowance for doubtful accounts | 37,135,352 | 38,466,200 | ||
Uncollectible accounts | 61,000,000 | 76,000,000 | ||
Loss of inventories | 31,000,000 | $ 25,000,000 | ||
Customer deposits | 7,368,610 | 7,342,590 | ||
United States [Member] | ||||
Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Deposits in banks | $ 59,189 | $ 68,470 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of basic and diluted earnings per share - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of basic and diluted earnings per share [Abstract] | ||||
Net Income (loss) for Basic Earnings Per Share | $ (14,814,788) | $ (50,222,309) | $ (85,804,365) | $ (83,277,476) |
Basic Weighted Average Number of Shares | 6,350,129 | 6,143,159 | 6,350,129 | 5,371,420 |
Net Income (loss) Per Share – Basic | $ (2.33) | $ (8.18) | $ (13.51) | $ (15.75) |
Net Income (loss) for Diluted Earnings Per Share | $ (14,814,788) | $ (50,222,309) | $ (85,804,365) | $ (83,277,476) |
Diluted Weighted Average Number of Shares | 6,350,129 | 6,143,159 | 6,350,129 | 5,371,420 |
Net Income (loss) Per Share – Diluted | $ (2.33) | $ (8.18) | $ (13.51) | $ (15.75) |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Schedule of inventories [Abstract] | ||
Raw materials | $ 21,061,453 | $ 43,177,071 |
Supplies and packing materials | 392,847 | 465,746 |
Work in progress | 266,735 | 374,756 |
Finished goods | 42,296,920 | 54,903,508 |
Total | $ 64,017,955 | $ 98,921,081 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - Schedule of property, plant and equipment - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 63,443,082 | $ 58,609,121 |
Less: accumulated depreciation | (40,795,150) | (35,680,787) |
Total | 22,647,933 | 22,928,334 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 40,840,859 | 37,799,650 |
Auto [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 3,510,165 | 3,207,619 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 19,092,058 | $ 17,601,852 |
Intangible Assets (Details)
Intangible Assets (Details) | Aug. 13, 2003USD ($) | Jun. 30, 2016USD ($) | Jul. 02, 2010USD ($) | Sep. 25, 2009USD ($) | Aug. 16, 2001USD ($) | Jun. 30, 2016CNY (¥) | Jul. 02, 2010CNY (¥) | Sep. 25, 2009CNY (¥) | Aug. 13, 2003CNY (¥) | Aug. 16, 2001CNY (¥) |
Land Use Rights [Member] | ||||||||||
Intangible Assets (Details) [Line Items] | ||||||||||
Intangible assets land use right, description | On August 13, 2003, Tianjuyuan was granted a certificate of Land Use Right for a parcel of land of approximately 11 acres (42,726 square meters or 459,898 square feet) at Ping Gu District, Beijing. | Yuxing was granted a land use right for approximately 88 acres (353,000 square meters or 3.8 million square feet) by the People’s Government and Land & Resources Bureau of Hu County, Xi’an, Shaanxi Province. The fair value of the related intangible asset was determined to be the respective cost of RMB73,184,895 (or $11,168,015). The intangible asset is being amortized over the grant period of 50 years using the straight-line method. | ||||||||
Fair value of intangible assets | $ 159,612 | $ 11,168,015 | $ 1,111,706 | ¥ 73,184,895 | ¥ 1,045,950 | ¥ 7,285,099 | ||||
Amortization period of intangible assets | 50 years | 50 years | 50 years | |||||||
Patented Technology [Member] | ||||||||||
Intangible Assets (Details) [Line Items] | ||||||||||
Fair value of intangible assets | $ 1,403,920 | $ 896,535 | ¥ 9,200,000 | ¥ 5,875,068 | ||||||
Amortization period of intangible assets | 6 years | 10 years | ||||||||
Customer Relationships [Member] | ||||||||||
Intangible Assets (Details) [Line Items] | ||||||||||
Fair value of intangible assets | $ 2,513,655 | $ 9,919,000 | ¥ 16,472,179 | 65,000,000 | ||||||
Amortization method, description | The fair value of the acquired customer relationships was estimated to be RMB65,000,000 (or $9,919,000) and is amortized over the remaining useful life of ten years. | |||||||||
Customer Relationships [Member] | Minimum [Member] | ||||||||||
Intangible Assets (Details) [Line Items] | ||||||||||
Amortization period of intangible assets | 7 years | |||||||||
Customer Relationships [Member] | Maximum [Member] | ||||||||||
Intangible Assets (Details) [Line Items] | ||||||||||
Amortization period of intangible assets | 10 years | |||||||||
Non-Compete Agreement [Member] | ||||||||||
Intangible Assets (Details) [Line Items] | ||||||||||
Fair value of intangible assets | $ 938,594 | $ 201,432 | ¥ 6,150,683 | 1,320,000 | ||||||
Amortization period of intangible assets | 5 years | |||||||||
Amortization method, description | The fair value of the acquired non-compete agreement was estimated to be RMB1,320,000 (or $201,432) and is amortized over the remaining useful life of five years using the straight-line method. | |||||||||
Trademarks [Member] | ||||||||||
Intangible Assets (Details) [Line Items] | ||||||||||
Fair value of intangible assets | $ 6,210,820 | ¥ 40,700,000 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of intangible assets - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | $ 16,429,712 | $ 15,751,625 |
Land use rights, net [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | 9,361,306 | 8,850,905 |
Technology patent, net [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | 1,887 | 2,069 |
Customer relationships, net [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | 763,582 | 908,933 |
Non-compete agreement [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | 92,117 | 230,669 |
Trademarks [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | $ 6,210,820 | $ 5,759,049 |
Intangible Assets (Details) -_2
Intangible Assets (Details) - Schedule of intangible assets - Land Use Rights [Member] - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Indefinite-lived Intangible Assets [Line Items] | ||
Land use rights | $ 12,439,333 | $ 11,534,506 |
Less: accumulated amortization | (3,078,027) | (2,683,601) |
Total land use rights, net | $ 9,361,306 | $ 8,850,905 |
Intangible Assets (Details) -_3
Intangible Assets (Details) - Schedule of intangible assets - Technology Patent [Member] - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Indefinite-lived Intangible Assets [Line Items] | ||
Technology know-how | $ 2,304,980 | $ 2,137,317 |
Less: accumulated amortization | (2,303,094) | (2,135,248) |
Total technology know-how, net | $ 1,886 | $ 2,069 |
Intangible Assets (Details) -_4
Intangible Assets (Details) - Schedule of intangible assets - Customer Relationships [Member] - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Indefinite-lived Intangible Assets [Line Items] | ||
Customer relationships | $ 12,166,737 | $ 11,281,739 |
Less: accumulated amortization | (11,403,156) | (10,372,806) |
Total customer relationships, net | $ 763,581 | $ 908,933 |
Intangible Assets (Details) -_5
Intangible Assets (Details) - Schedule of intangible assets - Non-Compete Agreement [Member] - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Indefinite-lived Intangible Assets [Line Items] | ||
Non-compete agreement | $ 1,245,740 | $ 1,155,127 |
Less: accumulated amortization | (1,153,623) | (924,458) |
Total non-compete agreement, net | $ 92,117 | $ 230,669 |
Intangible Assets (Details) -_6
Intangible Assets (Details) - Schedule of finite-lived intangible assets, future amortization expense | Mar. 31, 2021USD ($) |
Schedule of finite-lived intangible assets, future amortization expense [Abstract] | |
2022 | $ 698,360 |
2023 | 591,575 |
2024 | 474,661 |
2025 | 367,559 |
2026 | $ 354,472 |
Other Non-Current Assets (Detai
Other Non-Current Assets (Details) ¥ in Millions | 1 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2017CNY (¥) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | |
Other Non-Current Assets (Details) [Line Items] | ||||
Other non-current assets | $ 10,261,553 | |||
Jinong [Member] | ||||
Other Non-Current Assets (Details) [Line Items] | ||||
Description of rental agreement | Jinong entered into a lease agreement for approximately 3,400 mu, and 2600-hectare agriculture lands in Shiquan County, Shaanxi Province. The lease was from April 2017 and was renewable for every ten-year period up to 2066. | |||
Rental fees (in Yuan Renminbi) | ¥ | ¥ 13 | |||
Rental term | 10 years | |||
Amortized expenses | $ 1,500,000 | $ 1,400,000 |
Other Non-Current Assets (Det_2
Other Non-Current Assets (Details) - Schedule of estimated amortization expenses of lease advance payments | Mar. 31, 2021USD ($) |
Schedule of estimated amortization expenses of lease advance payments [Abstract] | |
2023 | $ 2,048,655 |
2024 | 2,048,655 |
2025 | 2,048,655 |
2026 and thereafter | $ 4,115,588 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables (Details) - Schedule of accrued expenses and other payables - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Schedule of accrued expenses and other payables [Abstract] | ||
Payroll and welfare payable | $ 182,282 | $ 168,705 |
Accrued expenses | 8,935,041 | 7,640,130 |
Other payables | 7,127,685 | 6,211,818 |
Other levy payable | 127,980 | 118,671 |
Total | $ 16,372,988 | $ 14,139,324 |
Amount Due to Related Parties (
Amount Due to Related Parties (Details) | Jul. 02, 2020USD ($) | Jul. 02, 2020CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($) |
Amount Due to Related Parties (Details) [Line Items] | |||||||
Amount due to related parties | $ 4,342,376 | $ 4,212,407 | |||||
Description of office lease | Jinong signed an office lease with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as Chairman. Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. | Jinong signed an office lease with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as Chairman. Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. | |||||
Kingtone Information [Member] | |||||||
Amount Due to Related Parties (Details) [Line Items] | |||||||
Effective lease term | The lease provides for a two-year term effective as of July 1, 2020 with monthly rent of RMB24,480 (approximately $3,736). | The lease provides for a two-year term effective as of July 1, 2020 with monthly rent of RMB24,480 (approximately $3,736). | |||||
Monthly rental expenses | $ 3,736 | ¥ 24,480 | |||||
Sales Agreement [Member] | |||||||
Amount Due to Related Parties (Details) [Line Items] | |||||||
Sale of products | $ 3,891,300 | ¥ 25,500,000 | |||||
Yuxing [Member] | |||||||
Amount Due to Related Parties (Details) [Line Items] | |||||||
Sale of products | 175,948 | $ 294,983 | |||||
Gufeng [Member] | Xi'an Techteam Science and Technology Industry (Group) Co. Ltd. [Member] | |||||||
Amount Due to Related Parties (Details) [Line Items] | |||||||
Amount due to related parties | 1,068,200 | 990,500 | |||||
Jinong [Member] | |||||||
Amount Due to Related Parties (Details) [Line Items] | |||||||
Amount due to related parties | $ 12,688 | $ 11,819 |
Loan Payables (Details)
Loan Payables (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Loan Payables (Details) [Line Items] | ||
Interest expense | $ 181,269 | $ 215,241 |
Loans Payable [Member] | Minimum [Member] | ||
Loan Payables (Details) [Line Items] | ||
Loans payable, interest rate | 5.22% | |
Loans Payable [Member] | Maximum [Member] | ||
Loan Payables (Details) [Line Items] | ||
Loans payable, interest rate | 5.66% |
Loan Payables (Details) - Sched
Loan Payables (Details) - Schedule of loan payables | 6 Months Ended |
Dec. 31, 2020USD ($) | |
Loan Payables (Details) - Schedule of loan payables [Line Items] | |
Short term loans payables | $ 4,120,200 |
Postal Saving Bank of China - Pinggu Branch [Member] | |
Loan Payables (Details) - Schedule of loan payables [Line Items] | |
Loan period per agreement, Start and End | June 17, 2020-June 16, 2021 |
Loans payable, interest rates | 5.66% |
Short term loans payables | $ 2,289,000 |
Beijing Bank - Pinggu Branch [Member] | |
Loan Payables (Details) - Schedule of loan payables [Line Items] | |
Loan period per agreement, Start and End | June 22, 2020-June 22, 2021 |
Loans payable, interest rates | 5.22% |
Short term loans payables | $ 1,526,000 |
Postal Saving Bank of China - Pinggu Branch [Member] | |
Loan Payables (Details) - Schedule of loan payables [Line Items] | |
Loan period per agreement, Start and End | August 6, 2020-August 5, 2021 |
Loans payable, interest rates | 5.66% |
Short term loans payables | $ 305,200 |
Convertible Notes Payable (Deta
Convertible Notes Payable (Details) | 1 Months Ended | 9 Months Ended | ||||||
Feb. 14, 2020USD ($)$ / sharesshares | Nov. 15, 2019USD ($)$ / sharesshares | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | |
Convertible Notes Payable (Details) [Line Items] | ||||||||
Stock issued for convertible notes (in Shares) | shares | 377,650 | 995,000 | ||||||
Common stock price per share (in Dollars per share) | $ / shares | $ 5 | $ 5 | ||||||
Total issued convertible notes | $ 1,888,250 | $ 4,975,000 | ||||||
Maturity term | January 1, 2020 | June 30, 2019 | ||||||
Fair value of convertible notes payable | $ 0 | $ 0 | ||||||
Jinong [Member] | ||||||||
Convertible Notes Payable (Details) [Line Items] | ||||||||
Aggregate amount of convertible notes payable | $ 7,782,600 | ¥ 51,000,000 | ||||||
Convertible notes payable, term | 3 years | |||||||
Annual interest rate | 3.00% | |||||||
Zhenbai [Member] | ||||||||
Convertible Notes Payable (Details) [Line Items] | ||||||||
Aggregate amount of convertible notes payable | $ 1,831,200 | ¥ 12,000,000 | ||||||
Debt conversion, description | The per share conversion price of the notes is the higher of the following: (i) $5.00 per share or (ii) 75% of the closing price of the Company’s common stock on the date the noteholder delivers the conversion notice. | |||||||
Accretion expenses | $ 1,375,499 | $ 1,375,606 |
Convertible Notes Payable (De_2
Convertible Notes Payable (Details) - Schedule of convertible notes payable - 9 months ended Mar. 31, 2021 | $ / shares | CNY (¥) |
Wangtian, Lishijie, Xindeguo, Xinyulei, Jinyangguang [Member] | ||
Convertible Notes Payable (Details) - Schedule of convertible notes payable [Line Items] | ||
Issuance Date | Jun. 30, 2016 | |
Notional Interest Rate | 3.00% | |
Conversion Price | $ / shares | $ 5 | |
Notional Amount | ¥ | ¥ 39,000,000 | |
Maturity Date | Jun. 30, 2019 | |
Fengnong, Xiangrong [Member] | ||
Convertible Notes Payable (Details) - Schedule of convertible notes payable [Line Items] | ||
Issuance Date | Jan. 1, 2017 | |
Notional Interest Rate | 3.00% | |
Conversion Price | $ / shares | $ 5 | |
Notional Amount | ¥ | ¥ 12,000,000 | |
Maturity Date | Dec. 31, 2019 |
Taxes Payable (Details)
Taxes Payable (Details) - USD ($) | Apr. 04, 2018 | Jan. 01, 2008 | Mar. 20, 2019 | Apr. 28, 2017 | Mar. 31, 2021 | Mar. 31, 2020 |
Taxes Payable (Details) [Line Items] | ||||||
Periodic tax reduction, description | The two-year tax exemption and three-year 50% tax reduction tax holiday for production-oriented FIEs was eliminated. | |||||
Provision for income taxes (in Dollars) | $ 277,685 | $ 0 | ||||
Value added tax rate | 9.00% | 13.00% | ||||
US statutory income tax rate, percentage | 21.00% | 21.00% | ||||
PRC [Member] | ||||||
Taxes Payable (Details) [Line Items] | ||||||
Periodic tax reduction, description | “Reinstatement of VAT for Fertilizer Products”, and Notice #97, “Supplementary Reinstatement of VAT for Fertilizer Products”, which restore the VAT of 13% of the gross sales price on certain fertilizer products includes non-organic fertilizer products starting from September 1, 2015, but granted taxpayers a reduced rate of 3% from September 1, 2015 through June 30, 2016. | |||||
Value added tax rate | 10.00% | 11.00% | ||||
PRC [Member] | Minimum [Member] | ||||||
Taxes Payable (Details) [Line Items] | ||||||
Value added tax rate | 1.00% | 1.00% | 2.00% | |||
PRC [Member] | Maximum [Member] | ||||||
Taxes Payable (Details) [Line Items] | ||||||
Value added tax rate | 11.00% | 10.00% | 13.00% | |||
Enterprise Income Tax [Member] | ||||||
Taxes Payable (Details) [Line Items] | ||||||
New enterprise income tax rate | 25.00% | |||||
Existing enterprise income tax rate | 33.00% | |||||
High tech income tax rate | 15.00% | |||||
Effective tax rate, description | Our effective tax rates were approximately -4.0% and-1.6% for the nine months ended March 31, 2021 and 2020 |
Taxes Payable (Details) - Sched
Taxes Payable (Details) - Schedule of income taxes and related payables - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Schedule of income taxes and related payables [Abstract] | ||
VAT provision | $ (229,408) | $ (257,068) |
Income tax payable | 2,557,354 | 1,704,543 |
Other levies | 1,432,647 | 1,187,442 |
Repatriation tax | 29,010,535 | 29,010,535 |
Total | $ 32,771,128 | $ 31,645,452 |
Taxes Payable (Details) - Sch_2
Taxes Payable (Details) - Schedule of provision for income taxes - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Schedule of provision for income taxes [Abstract] | |||||
Current tax - foreign | $ 3,283,395 | $ 2,344,928 | |||
Deferred tax | |||||
Total | $ 235,554 | $ 1,717,017 | $ 3,283,395 | $ 1,341,513 | $ 2,344,928 |
Taxes Payable (Details) - Sch_3
Taxes Payable (Details) - Schedule of deferred tax assets - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Schedule of deferred tax assets [Abstract] | ||
Deferred Tax Benefit | $ 35,842,375 | $ 33,743,546 |
Valuation allowance | (35,842,375) | (33,743,546) |
Total deferred tax assets |
Taxes Payable (Details) - Sch_4
Taxes Payable (Details) - Schedule of effective income tax rate reconciliation - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Taxes Payable (Details) - Schedule of effective income tax rate reconciliation [Line Items] | |||||
Pretax income (loss) | $ (82,520,971) | $ (83,277,476) | |||
Expected income tax expense (benefit) | (20,576,178) | (20,769,758) | |||
High-tech income benefits on Jinong | 2,667,471 | 2,561,450 | |||
Losses from subsidiaries in which no benefit is recognized | 18,725,422 | 19,289,362 | |||
Change in valuation allowance on deferred tax asset from US tax benefit | 2,466,680 | 260,459 | |||
Actual tax expense | $ 235,554 | $ 1,717,017 | $ 3,283,395 | $ 1,341,513 | $ 2,344,928 |
Actual tax expense, percentage | (4.00%) | (1.60%) | |||
China 15% - 25% [Member] | |||||
Taxes Payable (Details) - Schedule of effective income tax rate reconciliation [Line Items] | |||||
Pretax income (loss) | $ (81,169,349) | $ (82,037,196) | |||
Expected income tax expense (benefit) | $ (20,292,337) | $ (20,509,299) | |||
Expected income tax expense (benefit), percentage | 25.00% | 25.00% | |||
High-tech income benefits on Jinong | $ 2,667,471 | $ 2,561,450 | |||
High-tech income benefits on Jinong, percentage | (3.30%) | (3.10%) | |||
Losses from subsidiaries in which no benefit is recognized | $ 18,725,422 | $ 19,289,362 | |||
Losses from subsidiaries in which no benefit is recognized, percentage | (23.10%) | (23.50%) | |||
Change in valuation allowance on deferred tax asset from US tax benefit | $ 2,182,839 | ||||
Change in valuation allowance on deferred tax asset from US tax benefit, percentage | (2.70%) | ||||
Actual tax expense | $ 3,283,395 | $ 1,341,513 | |||
Actual tax expense, percentage | (4.00%) | (1.60%) | |||
United States 21% [Member] | |||||
Taxes Payable (Details) - Schedule of effective income tax rate reconciliation [Line Items] | |||||
Pretax income (loss) | $ (1,351,622) | $ (1,240,280) | |||
Expected income tax expense (benefit) | $ (283,841) | $ (260,459) | |||
Expected income tax expense (benefit), percentage | 21.00% | 21.00% | |||
High-tech income benefits on Jinong | |||||
High-tech income benefits on Jinong, percentage | |||||
Losses from subsidiaries in which no benefit is recognized | |||||
Losses from subsidiaries in which no benefit is recognized, percentage | |||||
Change in valuation allowance on deferred tax asset from US tax benefit | $ 283,841 | $ 260,459 | |||
Change in valuation allowance on deferred tax asset from US tax benefit, percentage | (21.00%) | (21.00%) | |||
Actual tax expense | |||||
Actual tax expense, percentage |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - USD ($) | Apr. 05, 2021 | Nov. 15, 2019 | Feb. 14, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Apr. 07, 2021 | Jun. 30, 2020 |
Stockholders’ Equity (Details) [Line Items] | |||||||
Common stock, shares issued | 995,000 | 377,650 | 6,350,129 | 6,350,129 | |||
Purchase price per share (in Dollars per share) | $ 5 | $ 5 | |||||
Proceeds from issuance of stock (in Dollars) | $ 4,975,000 | $ 10,252,000 | |||||
Maturity date | Jan. 1, 2020 | ||||||
Common stock, shares outstanding | 6,350,129 | 6,350,129 | |||||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | |||||
Offering purchase price, per share (in Dollars per share) | $ 5 | $ 5 | |||||
Stock Issued During Period, Shares, Issued for Services | 137,500 | ||||||
Preferred stock, description | Under the Company’s Articles of Incorporation, the Board has the authority, without further action by stockholders, to designate up to 20,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges, qualifications and restrictions granted to or imposed upon the preferred stock, including dividend rights, conversion rights, voting rights, rights and terms of redemption, liquidation preference and sinking fund terms, any or all of which may be greater than the rights of the common stock. | ||||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | |||||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | |||||
Preferred stock, shares issued | 0 | 0 | |||||
Preferred stock, shares outstanding | 0 | 0 | |||||
Subsequent Event [Member] | |||||||
Stockholders’ Equity (Details) [Line Items] | |||||||
Stock value (in Dollars) | $ 770,000 | ||||||
Subsequent Event [Member] | Private Placement Offering [Member] | |||||||
Stockholders’ Equity (Details) [Line Items] | |||||||
Shares of common stock | 2,000,000 | ||||||
Common stock, par value (in Dollars per share) | $ 0.001 | ||||||
Offering purchase price, per share (in Dollars per share) | $ 7 |
Concentrations and Litigation (
Concentrations and Litigation (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Supplier Concentration Risk [Member] | One Vendor [Member] | ||
Concentrations and Litigation (Details) [Line Items] | ||
Vendor concentration, description | There was only one vendor from which the Company purchased more than 10% of its raw materials, with the total of 11.2% of its raw materials for the Nine Months Ended March 31, 2021. | |
Total purchase amount (in Dollars) | $ 13,506,092 | |
Concentration Risk, Percentage | 10.00% | |
Customer Concentration Risk [Member] | ||
Concentrations and Litigation (Details) [Line Items] | ||
Customer concentration, description | No customer accounted for over 10% of the Company’s sales for the Nine Months Ended March 31, 2021. | |
Customer Concentration Risk [Member] | Customer One [Member] | ||
Concentrations and Litigation (Details) [Line Items] | ||
Concentration Risk, Percentage | 10.60% | |
Customer Concentration Risk [Member] | Customer Two [Member] | ||
Concentrations and Litigation (Details) [Line Items] | ||
Concentration Risk, Percentage | 10.40% | |
Customer Concentration Risk [Member] | Two Customers [Member] | ||
Concentrations and Litigation (Details) [Line Items] | ||
Total purchase amount (in Dollars) | $ 33,957,707 |
Segment Reporting (Details)
Segment Reporting (Details) | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Number of business segments | 4 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of segment reporting information - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | ||
Segment Reporting Information [Line Items] | ||||||
Revenues from unaffiliated customers | $ 86,068,404 | $ 85,826,689 | $ 178,567,978 | $ 186,213,269 | ||
Operating income (loss) | (14,159,868) | (48,464,372) | (80,996,746) | (83,075,289) | ||
Net income (loss) | (14,814,788) | (50,222,309) | (85,804,365) | (84,618,989) | ||
Depreciation and Amortization | 983,031 | 1,172,886 | 2,850,502 | 3,543,104 | ||
Interest expense | 57,316 | (11,190) | 181,269 | 76,306 | ||
Capital Expenditure | 170,910 | 15,677 | 263,711 | 66,210 | ||
Identifiable assets | 290,330,294 | 290,330,294 | $ 342,128,183 | |||
Sales VIEs [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from unaffiliated customers | 18,755,772 | 15,450,955 | 38,453,879 | 38,670,247 | ||
Operating income (loss) | 1,348,375 | 812,350 | 107,604 | 5,653,582 | ||
Net income (loss) | 1,023,254 | 89,265 | (710,755) | 4,312,975 | ||
Depreciation and Amortization | 131,354 | 182,658 | 384,717 | 526,096 | ||
Interest expense | (87,497) | (164,594) | ||||
Capital Expenditure | 23,970 | 14,654 | 23,970 | 14,654 | ||
Identifiable assets | 52,403,577 | 52,403,577 | 44,715,491 | |||
Reconciling item (1) [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income (loss) | [1] | |||||
Net income (loss) | [1] | 5 | (1) | 7 | 6 | |
Identifiable assets | [1] | (35,491,191) | (35,491,191) | (33,157,364) | ||
Reconciling item (2) [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income (loss) | [2] | (389,072) | (1,240,286) | |||
Net income (loss) | [2] | (287,608) | (389,072) | (3,534,467) | (1,240,286) | |
Identifiable assets | [2] | 166,121 | 166,121 | 166,121 | ||
Reconciling item (3) [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net income (loss) | (181) | (28) | (13,008) | (12,379) | ||
Jinong [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from unaffiliated customers | 15,818,610 | 11,266,437 | 45,249,797 | 44,842,738 | ||
Operating income (loss) | (4,562,066) | (4,567,306) | (9,626,306) | (10,335,081) | ||
Net income (loss) | (4,546,023) | (5,388,358) | (9,836,830) | (10,245,799) | ||
Depreciation and Amortization | 206,810 | 190,739 | 601,680 | 572,587 | ||
Interest expense | 59 | 25,659 | ||||
Capital Expenditure | 2,020 | 57 | 59,068 | 25,005 | ||
Identifiable assets | 80,082,353 | 80,082,353 | 83,055,679 | |||
Gufeng [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from unaffiliated customers | 48,438,434 | 57,094,310 | 86,703,031 | 95,684,076 | ||
Operating income (loss) | (11,120,630) | (44,325,347) | (71,940,923) | (77,454,456) | ||
Net income (loss) | (11,179,039) | (44,538,320) | (72,188,675) | (77,733,209) | ||
Depreciation and Amortization | 326,677 | 521,051 | 935,344 | 1,557,909 | ||
Interest expense | 57,316 | 76,248 | 181,269 | 215,241 | ||
Capital Expenditure | 38,380 | 698 | 74,133 | 698 | ||
Identifiable assets | 155,355,263 | 155,355,263 | 213,038,203 | |||
Yuxing [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from unaffiliated customers | 3,055,588 | 2,014,987 | 8,161,271 | 7,016,208 | ||
Operating income (loss) | 174,453 | 5,003 | 462,879 | 300,952 | ||
Net income (loss) | 174,804 | 4,204 | 479,363 | 299,702 | ||
Depreciation and Amortization | 318,190 | 296,863 | 928,761 | 886,512 | ||
Interest expense | ||||||
Capital Expenditure | 106,540 | $ 268 | 106,540 | $ 25,852 | ||
Identifiable assets | $ 37,814,171 | $ 37,814,171 | $ 34,310,053 | |||
[1] | Reconciling amounts refer to the unallocated assets or expenses of Green New Jersey. | |||||
[2] | Reconciling amounts refer to the unallocated assets or expenses of the Parent Company. |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | 1 Months Ended | 9 Months Ended | ||||
Jul. 02, 2020USD ($)ft² | Jul. 02, 2020CNY (¥)ft² | Feb. 29, 2004USD ($) | Feb. 29, 2004CNY (¥) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | |
Commitments and Contingencies (Details) [Line Items] | ||||||
Description of rental agreement | Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. | Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. | ||||
Monthly rent expenses | $ | $ 36,994 | $ 35,201 | ||||
Description of rental term | In February 2004, Tianjuyuan signed a fifty-year lease with the village committee of Dong Gao Village and Zhen Nan Zhang Dai Village in the Beijing Ping Gu District, at a monthly rent of RMB 2,958(approximately $443). | In February 2004, Tianjuyuan signed a fifty-year lease with the village committee of Dong Gao Village and Zhen Nan Zhang Dai Village in the Beijing Ping Gu District, at a monthly rent of RMB 2,958(approximately $443). | ||||
Kingtone Information [Member] | ||||||
Commitments and Contingencies (Details) [Line Items] | ||||||
Pursuant to lease in square feet (in Square Feet) | ft² | 6,588 | 6,588 | ||||
Monthly rent expenses | $ 3,667 | ¥ 24,480 | ||||
Village committee [Member] | ||||||
Commitments and Contingencies (Details) [Line Items] | ||||||
Monthly rent expenses | $ 443 | ¥ 2,958 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of payments for lease expenses | Mar. 31, 2021USD ($) |
Schedule of payments for lease expenses [Abstract] | |
2022 | $ 49,326 |
2023 | 49,326 |
2024 | 49,326 |
2025 | 49,326 |
2026 | $ 49,326 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - Schedule of VIEs consolidated financial statements - Variable Interest Entities [Member] - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Current Assets | |||||
Cash and cash equivalents | $ 617,851 | $ 617,851 | $ 712,301 | ||
Accounts receivable, net | 35,557,185 | 35,557,185 | 33,727,918 | ||
Inventories | 30,612,244 | 30,612,244 | 22,995,075 | ||
Other current assets | 1,393,000 | 1,393,000 | 593,942 | ||
Related party receivable | 165,972 | 165,972 | 66 | ||
Advances to suppliers | 963,077 | 963,077 | 520,901 | ||
Total Current Assets | 69,309,329 | 69,309,329 | 58,550,203 | ||
Plant, Property and Equipment, Net | 8,501,436 | 8,501,436 | 8,513,395 | ||
Other assets | 96,131 | 96,131 | 59,575 | ||
Intangible Assets, Net | 9,603,151 | 9,603,151 | 9,391,626 | ||
Goodwill | 2,707,701 | 2,707,701 | 2,510,745 | ||
Total Assets | 90,217,749 | 90,217,749 | 79,025,544 | ||
Current Liabilities | |||||
Accounts payable | 20,163,566 | 20,163,566 | 16,416,828 | ||
Customer deposits | 836,465 | 836,465 | 86,430 | ||
Accrued expenses and other payables | 8,661,699 | 8,661,699 | 6,996,544 | ||
Amount due to related parties | 45,064,229 | 45,064,229 | 41,549,931 | ||
Total Current Liabilities | 74,725,959 | 74,725,959 | 65,049,733 | ||
Total Liabilities | 74,725,959 | 74,725,959 | 65,049,733 | ||
Stockholders’ equity | 15,491,790 | 15,491,790 | 13,975,811 | ||
Total Liabilities and Stockholders’ Equity | 90,217,749 | 90,217,749 | $ 79,025,544 | ||
Revenue | 21,811,360 | $ 17,465,942 | 46,615,150 | $ 45,686,455 | |
Expenses | 20,613,304 | 17,372,472 | 46,846,543 | 41,073,778 | |
Net income (loss) | $ 1,198,056 | $ 93,470 | $ (231,393) | $ 4,612,677 |
Business Combinations (Details)
Business Combinations (Details) | 9 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Non compete agreements, description | Pursuant to the terms of certain Non-Compete Agreements dated June 30, 2016 and January 1, 2017, among Jinong and the shareholders of the sales VIE companies (the “Non-Compete Agreements”), the shareholders of the sales VIE companies agreed that during the period beginning on the initial date of their services with Jinong, and ending five (5) years after termination of their services with Jinong, without Jinong’s prior written consent, they will not provide services or accept positions including but not limited to partners, directors, shareholders, managers, proxies or consultants, provided by any profit making organizations with businesses that may compete with Jinong. They will not solicit or interfere with any of the Jinong’s customers, or solicit, induce, recruit or encourage any person engaged or employed by Jinong to terminate his or her service or engagement. If the shareholders of the sales VIE companies breach the non-compete obligations contained therein, Jinong is entitled to all loss and damages; if the damages are difficult to determine, remedies bore the shareholders of the sales VIE companies shall be no less than 50% of the salaries and other expenses Jinong provided in the past. |
Business Combinations (Detail_2
Business Combinations (Details) - Schedule of purchase price allocations at fair value - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 | Nov. 30, 2017 | Jan. 01, 2017 | Jun. 30, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 7,597,653 | $ 7,045,006 | |||
Total Asset | $ 290,330,294 | $ 342,128,183 | |||
Variable Interest Entities [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 708,737 | ||||
Accounts receivable | 6,422,850 | ||||
Advances to suppliers | 1,803,180 | ||||
Prepaid expenses and other current assets | 807,645 | ||||
Inventories | 7,787,043 | ||||
Machinery and equipment | 140,868 | ||||
Intangible assets | 270,900 | ||||
Other assets | 3,404,741 | ||||
Goodwill | 3,158,179 | ||||
Accounts payable | (3,962,670) | ||||
Customer deposits | (3,486,150) | ||||
Accrued expenses and other payables | (4,653,324) | ||||
Taxes payable | (16,912) | ||||
Purchase price | $ 12,385,087 | ||||
Zhenbai [Member] | |||||
Business Acquisition [Line Items] | |||||
Machinery and equipment | $ 222,875 | ||||
Intangible assets | $ 896,559 | 1,440 | |||
Goodwill | 538,488 | 684,400 | |||
Total Asset | 2,614,401 | ||||
Customer Relationship | 684,727 | 522,028 | |||
Non-compete Agreement | 211,833 | 392,852 | |||
Purchase price | 2,764,787 | ||||
Working Capital | $ 1,179,352 | $ 941,192 |
Business Combinations (Detail_3
Business Combinations (Details) - Schedule of purchase consideration paid for VIE - USD ($) | Nov. 30, 2017 | Jan. 01, 2017 | Jun. 30, 2016 |
Business Combinations (Details) - Schedule of purchase consideration paid for VIE [Line Items] | |||
Cash | $ 1,201,888 | ||
Convertible notes | 1,559,350 | ||
Derivative liability | 3,549 | ||
Net Loss | $ 2,764,787 | ||
Variable Interest Entities [Member] | |||
Business Combinations (Details) - Schedule of purchase consideration paid for VIE [Line Items] | |||
Cash | $ 5,568,500 | ||
Convertible notes | 6,671,769 | ||
Derivative liability | 144,818 | ||
Net Loss | $ 12,385,087 | ||
Zhenbai [Member] | |||
Business Combinations (Details) - Schedule of purchase consideration paid for VIE [Line Items] | |||
Cash | $ 461,330 | ||
Interest Payable | 83,039 | ||
Convertible notes | 1,724,683 | ||
Derivative liability | 13,353 | ||
Total Payback | 2,282,406 | ||
Net Loss | $ (331,995) |